Part A. (7 marks). Gerard Limited reported inventory of $689,600 and accounts payable to suppliers of $456,300 for the year ended December 31, 2020. The company has a periodic inventory system, and the inventory value given is the result of the physical count. a. The inventory count took place on December 31. Late in the day on December 31, goods with a cost of $54,300 and a retail price of $98,500 were delivered to a customer. These goods had been counted earlier in the day and were included in the inventory count. The company did not record the sale until January 3 due to the New Year's break. b. Goods from a supplier, in transit on December 31, were neither counted nor recorded as a purchase and account payable as of December 31. The goods, with a cost of $37,500, legally belonged to Gerard while they were in transit over the year-end. c. Goods received from a supplier on December 30 were counted and included in inventory, but the invoice had not been recorded as a purchase or accounts payable by the end of December. The invoice was for $51,100. d. The inventory count was subsequently determined to include $21,900 of goods on consignment from a supplier. Required: Indicate the amount and sign (+ or -) of the effect of items (b) to (d) on the balance in Inventory and Account Payable. If there is no effect, write N/E. Item (a) is done as an example. Calculate the correct balances for inventory (net) and accounts payable, as of December 31, 2020. Inventory Accounts Payable Preliminary value $689,600 $456,300 (a) Sale not recorded (done as example) -54,300 N/E (b) Goods in transit (c) Invoice unrecorded (d) Goods on consignment Revised (correct) total