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. The Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from Allen's accounting records are as follows:

Inventory at December 31, Year 5 (based on

physical count of goods in Allen's warehouse on December 21, Year 5) $1,250,000

Sales in Year 5 $9,000,000

Accounts payable at December 31, Year 5:

Vendor Terms Amount Baker Company 2/10, Net 30 $265,000

Charlie Company Net 30 210,000

Dolly Company Net 30 300,000

Eager Company Net 30 225,000

Full Company Net 30 --

Greg Company Net 30 --

$1,000,000

Complete Allen's inventory cutoff using the information above. Enter the amounts of any adjustments needed for the effects of the following transactions on Allen's inventory, accounts payable, and sales in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0) or leave the cell blank

. Transactions Inventory Accounts Payable Sales Initial Amount $1,250,000 $1,000,000 $9,000,000

1-3. Retailers were holding $210,000 at cost ($250,000 at retail) of goods on consignment from Allen, the consignor, at their stores on December 31, Year 5.

4-6. Goods were in transit from Greg to Allen on December 31, Year 5. The cost of the goods was $25,000, and they were shipped FOB shipping point on December 29, Year 5.

7-9. A quarterly freight bill in the amount of $2,000 specifically relating to merchandise purchases in December Year 5, all of which was still in the inventory at December 31, Year 5, was received on January 3, Year 6. The freight bill was not included in either the inventory or in the accounts payable at December 31, Year 5.