Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $78,000 and Cost of Goods Sold of $436,000.

a.

Included in Inventory (and Accounts Payable) are $11,600 of lenses held on consignment.

b.

Included in the Inventory balance are $5,800 of office supplies held in SLC's warehouse.

c.

Excluded from the Inventory balance are $8,800 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 $16,600.

d.

Included in the Inventory balance are $3,400 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 $ $