Ayayai Corporation asks you to review its December $31,2023$ inventory values and prepare the adjustments that are needed to the

books. The following information is given to you:

Ayayai uses the periodic method of recording inventory. A physical count reveals $$234,000$ of inventory on hand at

December $31,2023,$ although the books have not yet been adjusted to reflect the ending inventory.

Not included in the physical count of inventory is $$10,400$ of merchandise purchased on December $15$ from Shamsi. This

merchandise was shipped f$.$o$.$b$.$ shipping point on December $29$ and arrived in January. The invoice arrived and was recorded

on December $31.$

Included in inventory is merchandise sold to Sage on December $30,$ f$.$o$.$b$.$ destination. This merchandise was shipped after it

was counted. The invoice was prepared and recorded as a sale on account for $$12,000$ on December $31.$ The merchandise

cost $$7,300,$ and Sage received it on January $3.$

Included in the count of inventory was merchandise received from Dutton on December $31$ with an invoice price of $$15,000.$

The merchandise was shipped f$.$o$.$b$.$ destination. The invoice, which has not yet arrived, has not been recorded.

Not included in inventory is $$8,000$ of merchandise purchased from Growler Industries. This merchandise was received on

December $31,$ after the inventory had been counted. The invoice was received and recorded on December $30.$

Included in inventory was $$10,000$ of inventory held by Ayayai on consignment from Jackel Industries.

Included in inventory was merchandise sold to Kemp, f$.$o$.$b$.$ shipping point. This merchandise was shipped after it was

counted, on December $31.$ The invoice was prepared and recorded as a sale for $$18,000$ on December $31.$ The cost of this

merchandise was $$11,000,$ and Kemp received the merchandise on January $5.$

Excluded from inventory was a carton labelled "Please accept for credit." This carton contained merchandise costing $$1,500,$

which had been sold to a customer for $$2,500.$ No entry had been made to the books to record the return, but none of the

returned merchandise seemed damaged.

Ayayai sold $$12,000$ of inventory to Simply Corp. for $$18,000$ on account on December $15,2023.$ These items were shipped

f$.$o$.$b$.$ shipping point. The terms of sale indicate that Simply Corp. will be permitted to return an unlimited amount until May

$15,2024.$ Ayayai has never provided unlimited returns in the past and is not able to estimate the amount of any potential

returns that Simply may make.

Prepare any adjusting$/$correcting entries that are needed at December $31,2023.$ Assume the books have not been closed and that

Ayayai follows IFRS. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit