Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $72,000 and Cost of Goods

Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $72,000 and Cost of Goods Sold of $424,000.

  1. Included in Inventory (and Accounts Payable) are $10,400 of lenses SLC is holding on consignment.
  2. Included in SLCs Inventory balance are $5,200 of office supplies held in SLCs warehouse.
  3. Excluded from SLCs Inventory balance are $8,200 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $15,400.
  4. Included in SLCs Inventory balance are $3,100 of lenses that were damaged in December and will be scrapped in January, with zero realizable value.

Required:

For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

PLEASE NOTE WHETHER A DEBIT OR CREDIT*****************

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Journal entry worksheet 123r45 To record the elimination of consignment inventory, which does not belong to SLC. Note: Enter debits before credits. Journal entry worksheet To record the rectification for recording $5,200 supplies as inventory. Note: Enter debits before credits. Journal entry worksheet 1 2 3 4 5 To record the write-down of $3,100 inventory damaged in December and will be scrapped in January, with zero realizable value. Note: Enter debits before credits. Journal entry worksheet To record the elimination of $8,200 cost of goods sold in December for a sale to be made in January. Note: Enter debits before credits. Journal entry worksheet To record the elimination of $15,400 sales transaction recorded in December for a sale to be made in January when goods are shipped FOB destination. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance Services and Ethics in Australia an Integrated Approach

Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler

9th edition

978-1442539365, 1442539364

More Books

Students also viewed these Accounting questions

Question

How were the HR functions affected by Hurricane Rita?

Answered: 1 week ago

Question

What information might lead you to choose working for the company?

Answered: 1 week ago

Question

Which environment factor(s) did Hurricane Rita affect? Discuss.

Answered: 1 week ago