'achet Corporation is a wholesale distributor of truck replacement parts. Initial amounts

$$ken from Rachet's records are as follows:

Inventory at December $31($based on a physical count

of goods in Rachet's warehouse on December $31)$ $$1,420,006$

$$ccounts payable at December $31$:

Idditional Information:

Parts held by Rachet on consignment from Crates, amounting to $$240,000,$ were

included in the physical count of goods in Rachet's warehouse and in accounts

payable at December $31.$

Parts totaling $$39,000,$ 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 $$45,000.$ 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.

Parts in transit on December $31$ to customers, shipped f$.$o$.$b$.$ shipping point on

December $28,$ amounted to $$68,000.$ The customers received the parts on

January $6$ of the following year. Sales of $$74,000$ to the customers for the parts

were recorded by Rachet on January $2.$

Retailers were holding goods on consignment from Rachet, which had a cost of

$$380,000$ and a retail value of $$420,000.$

Goods were in transit from Gears to Rachet on December $31.$ The cost of the

goods was $$42,000,$ and they were shipped f$.$o$.$b$.$ shipping point on December $29.$

A freight bill in the amount of $$3,700$ 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 $31.$

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:

Complete the following schedule of adjustments to the initial amounts.

Note: Amounts to be deducted should be indicated with a minus sign.