E$7-2($Algo$)$ Determining the Correct Inventory Balance $[$LO $7-1,$ LO $7-2,$ LO $7-4]$

Seemore Lens Company $($SLC$)$ sells contact lenses FOB destination. For the year ended December $31,$ the company reported Inventory of $$89,000$ and Cost of Goods Sold of $$458,000.$

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Included in Inventory $($and Accounts Payable$)$ are $$13,800$ of lenses SLC is holding on consignment.

Included in SLC$$s Inventory balance are $$6,900$ of office supplies held in SLC$$s warehouse.

Excluded from SLC$$s Inventory balance are $$9,900$ of lenses in the warehouse, ready to send to customers on January $2.$ SLC reported these lenses as sold on December $31,$ at a price of $$18,800.$

Included in SLC$$s Inventory balance are $$3,950$ of lenses that were damaged in December and will be scrapped in January, with zero realizable value.

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Required:

Prepare the table showing the balances presently reported for Inventory and Cost of Goods Sold, and then displaying the adjustment$($s$)$ needed to correctly account for each of items $($a$)-($d$),$ and finally determining the appropriate Inventory and Cost of Goods Sold balances. $($Enter any decreases to account balances with a minus sign.$)$

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Required:

Indicate $($Yes or No$)$ whether SCC should include each item in its inventory balance at October $31.$

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Required:

Indicate $($Yes or No$)$ whether SCC should include each item in its inventory balance at October $31.$

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The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing $($SCC$).$ SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC$$s October $31$ year$-$end.

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Required:

Indicate $($Yes or No$)$ whether SCC should include each item in its inventory balance at October $31.$

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The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing $($SCC$).$ SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC$$s October $31$ year$-$end.

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Required:

Indicate $($Yes or No$)$ whether SCC should include each item in its inventory balance at October $31.$

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Cost of Goods Sold$ $168,000$Income Tax Expense$18,650$Merchandise Sales $($gross revenue$)$ for Cash$246,000$Merchandise Sales $($gross revenue$)$ on CrThe RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing $($SCC$).$ SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC$$s October $31$ year$-$end.

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Required:

Indicate $($Yes or No$)$ whether SCC should include each item in its inventory balance at October $31.$

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Prepare a multistep income statement for external reporting purposes.

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June $3$Purchased goods for $$3,500$ from Diamond Incorporated with terms $3/10,$ n$/30.$June $5$Returned goods costing $$700$ to Diamond Incorporated for credit on account.June $6$Purchased goods from Club Corporation for $$1,150$ with terms $3/10,$ n$/30.$June $11$Paid the balance owed to Diamond Incorporated.June $22$Paid Club Corporation in full.

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Required:

Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June $30.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

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Required:

Determine the Cost of Goods Sold and cost of purchases for the first quarter. $($Enter your answers in millions.$)$