E$7-2$ Determining the Correct Inventory Balance

LO $7-1,7-2,,7-4$

Seemore Lens Company $($SLC$)$ sells contact lenses FOB destination. For the year ended December $31,$ the company reported Inventory of $$70,000$ and Cost of Goods Sold of $$420,000.$

a$.$ Included in Inventory $($and Accounts Payable$)$ are $$10,000$ of lenses SLC is holding on consignment.

b$.$ Included in SLC$\text{'}$s Inventory balance are $$5,000$ of office supplies held in SLC$\text{'}$s warehouse.

c$.$ Excluded from SLC$\text{'}$s Inventory balance are $$8,000$ of lenses in the warehouse, ready to send to customers on January $2.$ SLC reported these lenses as sold on December $31,$ at a price of $$15,000.$

d$.$ Included in SLC$\text{'}$s Inventory balance are $$3,000$ of lenses that were damaged in December and will be scrapped in January, with zero realizable value.

Required:

Page $332$

Create a 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.

E$7-3$ Recording Journal Entries to Correct Inventory Misreporting

LO $7-1,,7-2,7-4$

Refer to the information in

E$7-2.$

Required:

For each item a