Millwork maintains a general ledger account for each class of inventory. The following

transactions relate to the raw materials inventory account in December:

a) An invoice for $4,990 was received and entered in the inventory account on

December 27, 20X5. The term of the purchase is FOB destination. The materials were

shipped on December 20, 20X5, and received on January 5, 20X6.

b) Materials for a price of $1,350 were received on December 22, 20X5. No entry was

made, as the invoice (term FOB destination) was not received until January 4, 20X6.

c) An invoice for $2,220 was received and entered in the inventory account on

December 30, 20X5. The term of the purchase is FOB shipping point. The materials

were shipped on December 22, 20X5, and received on January 3, 20X6.

Please solve this inventory error entry for me ASAP. Trial balance and question on the file.

Trial balance As at December 31, 20X5 Cash Accounts receivable Prepaid insurance Inventory Contract Asset Billings Note receivable Land Building, vehicle and equipment Accumulated deprecation building, vehicle and equipment Accounts payable Accrued liabilities Current portion of long-term debt Long-term debt Preferred shares (100 shares outstanding) Common shares (200 shares outstanding) Retained earnings Sales revenue Cost of goods sold Advertising Bad debt expense Bank charges Depreciation expense Gain on sale of truck Interest expense Insurance expense Office expenses Professional fees Training and development Wages, salaries and benefits Income tax expense Debit 158,560 124,600 5,500 78,540 20,710 Credit 15,000 10,850 190,000 1,102,560 853,850 82,700 56,500 27,200 240,000 50,000 100,000 151,043 1,302,800 763,460 4,800 5,400 300 72,644 3,450 20,900 14,400 34,800 8,030 3,600 236,646 26,243 $2,882,543 $2,882,543 QUESTION Millwork maintains a general ledger account for each class of inventory. The following transactions relate to the raw materials inventory account in December: a) An invoice for $4,990 was received and entered in the inventory account on December 27, 20X5. The term of the purchase is FOB destination. The materials were shipped on December 20, 20X5, and received on January 5, 20X6. b) Materials for a price of $1,350 were received on December 22, 20X5. No entry was made, as the invoice (term FOB destination) was not received until January 4, 20X6. c) An invoice for $2,220 was received and entered in the inventory account on December 30, 20X5. The term of the purchase is FOB shipping point. The materials were shipped on December 22, 20X5, and received on January 3, 20X6