2 SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and prepare the necessary adjustments to the books. The following information is given to you. (1) SPD uses the periodic method of recording inventory. A physical count reveals $78,819 of inventory on hand at 31 December 2021. (2) Not included in the physical count of inventory is $11,690 of merchandise purchased on 13 December from MILL. This merchandise was shipped f.o.b shipping point on 22 December and arrived in January. The invoice arrived and was recorded on 31 December. (3) Included in inventory is merchandise sold to DES on 17 December, f.o.b destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $13,298 on 31 December. The merchandise cost $10,210, and DES received it on 4 January. (4) Included in inventory was merchandise received from BCC on 31 December with an invoice price of $16,625. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. (5) Included in inventory was $10,928 of inventory held by SPD on consignment from ROCK Industries. (6) Included in inventory is merchandise sold to TIMI f.o.b shopping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $11,200 on 31 December. The cost of this merchandise was $8,200, and TIMI received the merchandise on 11 January. (7) Excluded from inventory was a carton labeled "Please accept for credit.". This carton contains merchandise costing $1,300 which had been sold to a customer for $2,100. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Required: (a) Determine the proper inventory balance for SPD Company at 31 December 2021. (5 marks) (b) Prepare any correcting entries to adjust inventory and related accounts to their proper amounts at 31 December 2021. Assume the book has not been closed. (6 marks)