The records of Thomas Company as of December 31, 2017, show the following:

The accountant of Thomas Company discovers in the first week of January 2018 that the following errors were made by his staff.
a. Goods costing $4,500 were in transit (FOB shipping point) and were not included in the ending inventory. The invoice had been received and the purchase recorded.
b. Damaged goods (cost $4,100) that were being held for return to the supplier were included in inventory. The goods had been recorded as a purchase and the entry for the return of these goods had also been made.
c. Inventory items costing $3,900 were incorrectly excluded from the final inventory. These goods had not been recorded as a purchase and had not been paid for by the company.
d. Goods that were shipped FOB destination had not yet arrived and were not included in inventory. However, the invoice had arrived on December 30, 2017, and the purchase for $2,700 was recorded.
e. Goods that cost $2,400 were segregated and not included in inventory because a customer expressed an intention to buy the goods. The sale of the goods for $4,200 had been recorded in December 2017.

Required 

Using the format provided above, show the correct amount for net purchases, profit, accounts payable, and inventory for Thomas Company as at December 31, 2017.

Transcribed Image Text:

Net Net Accounts Income Purchases Payable Inventory Balance per company's books (a) (b) (c) (d) (e) Correct balances $25,000 $18,400 $325,000 $31,000