Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $80,000 and Cost of Goods Sold of $440,000.

a.	Included in Inventory (and Accounts Payable) are $12,000 of lenses held on consignment.
b.	Included in the Inventory balance are $6,000 of office supplies held in SLCs warehouse.
c.	Excluded from the Inventory balance are $9,000 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $17,000.
d.	Included in the Inventory balance are $3,500 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.

Required:

Prepare the 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. (Enter any decreases to account balances with a minus sign.)

	Inventory	Cost of Goods Sold
Present Balance
a.
b.
c.
d.
Appropriate Balance	$0	$0