E7-2 Determining the Correct Inventory Balance LO 7-1, 7-2, 7-4 Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $70,000 and Cost of Goods Sold of $420,000. a. Included in Inventory (and Accounts Payable) are $10,000 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $5,000 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $8,000 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $15,000. d. Included in SLC's Inventory balance are $3,000 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: Page 332 Create a 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. E7-3 Recording Journal Entries to Correct Inventory Misreporting LO 7-1, 7-2, 7-4 Refer to the information in E7-2 Required: For each item (a)-(d), prepare the journal entry to correct the balances presently reported. If a journal entry is not required, indicate so.