Problem $8-3($Static$)$ Costs included in inventory $[$LO$8-2,8-3]$

Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows:

Inventory at December $31($based on a physical count of goods in Rachet's warehouse on December $31)$

$$1,250,000$

Accounts payable at December $31$:

$\backslash$table$[[$Vendor$,$Terms,Amount$],[$Boxes Company,$2\%,10$ days, net $30,$$ $265,000],[$Crates Company,Net $30,210,000],[$Driver Company,Net $30,300,000],[$Express Company,Net $30,225,000],[$Freight Company,Net $30,-],[$Gears Company,Net $30,-],[$Accounts payable, December $31,,$$ $1,000,000],[$Sales for the year,,$ $9,000,000]]$

Additional Information:

Parts held by Rachet on consignment from Crates, amounting to $$155,000,$ were included in the physical count of goods in Rachet's warehouse and in accounts payable at December $31.$

Parts totaling $$22,000,$ which were purchased from Freight and paid for in December, were sold in the last week of the year and appropriately recorded as sales of $$28,000.$ The parts were included in the physical count of goods in Rachet's warehouse on December $31$ because the parts were on the loading dock waiting to be picked up by customers.

Rachet's warehouse and in

$2.$ Parts totaling $$22,000,$ which

appropriately recorded as sal purchased from Freight and paid for in December, were sold in the last week of the year and December $31$ because the parts $$28,000.$ The parts were included in the physical count of goods in Rachet's warehouse on

$3.$ Parts in transit on December $31$ to on the loading dock waiting to be picked up by customers. customers received the parts on Janstomers, shipped f$.$o$.$b$.$ shipping point on December $28,$ amounted to $$34,000.$ The by Rachet on January $2.$

$4.$ Retailers were holding goods on consignment from Rachet, which had a cost of $$210,000$ and a retail value of $$250,000.$

$5.$ Goods were in transit from Gears to Rachet on December $31.$ The cost of the goods was $$25,000,$ and they were shipped f$.$o$.$b$.$ shipping point on December $29.$

$6.$ A freight bill in the amount of $$2,000$ specifically relating to inventory purchased in December, all of which was still in the inventory at December $31,$ was received on January $3.$ The freight bill was not included in either the inventory or in accounts payable at December $31.$

$7.$ All the purchases from Boxes occurred during the last seven days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Rachet's policy is to pay invoices in time to take advantage of all discounts, adjust inventory accordingly, and record accounts payable net of discounts.

Required:

Complete the following schedule of adjustments to the initial amounts.

Note: Amounts to be deducted should be indicated with a minus sign.

$\backslash$table$[[,$Inventory,Accounts Payable,Sales$],[$Initial amounts,$ $1,250,000,$$$,1,000,000,$$$,9,000,000],[$Adjustments$-$increase $($decrease$)$:$],[1.],[2.],[3.],[4.],[5.],[6.],[7.],[$Total adjustments$],[$Adjusted amounts,,,,,$]]$