Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records for the year ended December 31, 2017.

Inventory at December 31, 2017 (based on a physical count of goods on December 31, 2017)

$

1,700,000

Accounts payable at December 31, 2017

1,150,000

Net sales (sales less returns and allowances)

Additional information is as follows:

A- Work-in-process inventory costing $30,000 was sent to an outside processor for hand-tooling on December 30, 2017, and was therefore not included in physical inventory.

B- Goods received from Smith, Inc., a vendor, on December 27, 2017, were included in the physical count; however, the invoice from Smith ($43,000) was not included in accounts payable at December 31, 2017, because the accounts payable department never received its copy of the receiving report.

C- Goods received from another vendor just before the plant closed on December 31, 2017, were reported on a receiving report dated January 2, 2018. The goods, invoiced to Gomez at $83,000, were not included in the physical count, but the invoice was included in the December 31, 2017, accounts payable balance.

D- Included in the physical count were boots billed to a customer f.o.b. shipping point (title transfers when goods are shipped) on December 31, 2017. These boots had a cost of $25,000 and were recorded as sales of $35,000. The shipment was on Gomezs loading dock waiting to be picked up by the trucking company.

E- Boots shipped to a customer f.o.b. destination (title transfers when goods are received) on December 28, 2017, were in transit at December 31, 2017, and had a cost of $40,000. Gomez issued a sales invoice for $58,000 on January 3, 2018, upon notification of receipt by the customer.

F- Boots returned by customers and held on December 31, 2017, in the returned goods area pending inspection were not included in the physical count. On January 5, 2018, after inspection, the boots were returned to inventory and credit memos were issued to the customers. The boots, costing $27,000, were originally invoiced for $39,000.

Required:

Using the following format, prepare a schedule of adjustments as of December 31, 2017, to the amounts Gomez initially reported in its accounting records. Show separately the effect, if any, of each of the six transactions on the December 31, 2017, amounts. (Amounts to be deducted must be entered with a minus sign)

		Inventory	Accounts Payable	Net sales
	Initial amounts	$1,700,000	$1,150,000	$9,500,000
	Adjustmentsincrease (decrease)
a.	Off-site Work-in-process
b.	Excluded invoice
c.	Goods omitted from count
d.	F. O. B. shipping point
e.	F. O. B. destination
f.	Returned goods
	Total adjustments
	Adjusted amounts	$	$	$