1) Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $78,000 and Cost of Goods Sold of $436,000.

a) Included in Inventory (and Accounts Payable) are $11,600 of lenses held on consignment.

b) Included in the Inventory balance are $5,800 of office supplies held in SLC's warehouse.

c) Excluded from the Inventory balance are $8,800 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $16,600.

d) Included in the Inventory balance are $3,400 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.

Required: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.)

INVENTORY COST OF GOODS SOLD

Present Balance

A

B

C

D

Appropriate Balance $ $

(2) Seemore Lens Company (SLC) manufactures and sells contact lenses. For the year ended December 31, the company reported Inventory of $86,000 and Cost of Goods Sold of $452,000.

a) Included in Inventory (and Accounts Payable) are $13,200 of lenses held on consignment.

b) Included in the Inventory balance are $6,600 of office supplies held in SLC's warehouse.

c) Excluded from the Inventory balance are $9,600 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $18,200.

d) Included in the Inventory balance are $3,800 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.

Required:For each item, (a-d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field