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.
For each item, (a)–(d), prepare the journal entry to correct the balances presently reported. If a journal entry is not required, indicate so.

  • CreatedNovember 02, 2015
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