Reference no: EM132805392

Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $81,000 and Cost of Goods Sold of $442,000.

1. Included in Inventory (and Accounts Payable) are $12,200 of lenses SLC is holding on consignment.
2. Included in SLC's Inventory balance are $6,100 of office supplies held in SLC's warehouse. 
3. Excluded from SLC's Inventory balance are $9,100 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 $17,200. 
4. Included in SLC's Inventory balance are $3,550 of lenses that were damaged in December and will be scrapped in January, with zero realizable value.

Required:

Problem 1: 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.)