SALES COLUMN NEEDS TO BE DONE AND RED MARKS ARE WRONG FIX THESE OR I WILL RATE AS INCORRECT. Problem $8-3($Algo$)$ Costs included in inventory $[$LO$8-2,8-3]$ payable at December $31.$

$7.$ All the purchases from Boxes occurred during the last seven days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Rachet's policy is to pay invoices in time to take advantage of all discounts, adjust inventory accordingly, and record accounts payable net of discounts.

Required:

Complete the following schedule of adjustments to the initial amounts.

Note: Amounts to be deducted should be indicated with a minus sign.

Answer is not complete.

$\backslash$table$[[,$Inventory,$\backslash$table$[[$Accounts$],[$Payable$]],\backslash$table$[[$Sales$],[$$$10,000,000]]],[$Initial amounts,$$,1,450,000,$$$,1,160,000],[$Adjustments$-$increase $($decrease$)$:$],[1.,,(255,000),,(255,000),],[2.,,(42,000),,,],[3.,,(74,000)\backslash$times $,,,],[4.,,(410,000)\backslash$times $,,,],[5.,,45,000,,45,000,],[6.,,4,000,,4,000,],[7.,,(3,050),,(3,050),],[$Total adjustments,,$(735,050),,(209,050),0],[$Adjusted amounts,$$,2,185,050,$$$,950,950,$$$10,000,000]]$

Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows:

Inventory at December $31($based on a physical count

of goods in Rachet's warehouse on December $31)$ $$1,450,000$

Accounts payable at December $31$:

Additional Information:

Parts held by Rachet on consignment from Crates, amounting to $$255,000,$ were included in the physical count of goods in

Rachet's warehouse and in accounts payable at December $31.$

Parts totaling $$42,000,$ which were purchased from Freight and paid for in December, were sold in the last week of the year and

appropriately recorded as sales of $$48,000.$ The parts were included in the physical count of goods in Rachet's warehouse on

December $31$ because the parts were on the loading dock waiting to be picked up by customers.

Parts in transit on December $31$ to customers, shipped f$.$o$.$b$.$ shipping point on December $28,$ amounted to $$74,000.$ The

customers received the parts on January $6$ of the following year. Sales of $$80,000$ to the customers for the parts were recorded

by Rachet on January $2.$

Retailers were holding goods on consignment from Rachet, which had a cost of $$410,000$ and a retail value of $$450,000.$

Goods were in transit from Gears to Rachet on December $31.$ The cost of the goods was $$45,000,$ and they were shipped f$.$o$.$b$.$

shipping point on December $29.$

A freight bill in the amount of $$4,000$ specifically relating to inventory purchased in December, all of which was still in the

inventory at December $31,$ was received on January $3.$ The freight bill was not included in either the inventory or in accounts

payable at December $31.$

All the purchases from Boxes occurred during the last seven days of the year. These items have been recorded in accounts

payable and accounted for in the physical inventory at cost before discount. Rachet's policy is to pay invoices in time to take

advantage of all discounts, adjust inventory accordingly, and record accounts payable net of discounts.