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

Additional Information:
1. 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.
2. 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.

3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28, amounted to $34,000. The customers received the parts on January 6 of the following year. Sales of $40,000 to the customers for the parts were recorded 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:
Prepare a schedule of adjustments to the initial amounts using the format shown below. Show the effect, if any, of each of the transactions separately and if the transactions would have no effect on the amount shown, state none.

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Inventory at December 31 (based on a physical count of goods in Rachet's warehouse on December 31) Accounts payable at December 31: Vendor Terms Boxes Company 2%, 10 days, net 30 Crates Company Net 30 Driver Company Net 30 Express Company Net 30 Freight Company Net 30 Gears Company Net 30 Accounts payable, December 31 Sales for the year $1,250,000 Amount $ 265,000 210,000 300,000 225,000 $1,000,000 $9,000,000