Refer to the information in E7- 2.
a. Included in Inventory (and Accounts Payable) are $ 10,000 of lenses held on consignment.
b. Included in the Inventory balance are $ 5,000 of office supplies held in SLC’s warehouse.
c. Excluded from the Inventory balance are $ 8,000 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $ 15,000.
d. Included in the Inventory balance are $ 3,000 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.
Required:
For each item, (a)–(d), prepare the journal entry to correct the balances presently reported. If a journal entry is not required, indicate so.