Sheridan Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended $($a$1)$ Prepare a schedule of adjustments as of December $31,2025,$ to the initial amounts per Sheridan's accounting records. $($If an

amount reduces the account balance then enter either with a negative sign preceding the number, eg$.-15,000$ or in parenthesis, e$.$g$.(15,000).)$

Adjustments:

Total adjustments

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December $31,2025.$

Inventory at December $31,2025($based on physical count of goods in Sheridan's plant, at cost$,$ on December $31,2025)$

$$1,479,980$

Accounts payable at December $31,2025$

$1,273,500$

Net sales $($sales less sales returns$)$

$7,704,800$

Additional information is as follows.

Included in the physical count were tools billed to a customer f$.$o$.$b$.$ shipping point on December $31,2025.$ These tools had a

cost of $$31,400$ and were billed at $$40,400.$ The shipment was on Sheridan's loading dock waiting to be picked up by the

common carrier.

Goods were in transit from a vendor to Sheridan on December $31,2025.$ The invoice cost was $$76,400,$ and the goods were

shipped f$.$o$.$b$.$ shipping point on December $29,2025.$

Work in process inventory costing $$30,400$ was sent to an outside processor for plating on December $30,2025.$

Tools returned by customers and held pending inspection in the returned goods area on December $31,2025,$ were not

included in the physical count. On January $8,2026,$ the tools costing $$32,400$ were inspected and returned to inventory.

Credit memos totaling $$47,400$ were issued to the customers on the same date.

Tools shipped to a customer f$.$o$.$b$.$ destination on December $26,2025,$ were in transit at December $31,2025,$ and had a cost of

$$26,400.$ Upon notification of receipt by the customer on January $2,2026,$ Sheridan issued a sales invoice for $$42,400.$

Goods, with an invoice cost of $$27,400,$ received from a vendor at $5$:$00$ p$.$m$.$ on December $31,2025,$ were recorded on a

receiving report dated January $2,2026.$ The goods were not included in the physical count, but the invoice was included in

accounts payable at December $31,2025.$

Goods received from a vendor on December $26,2025,$ were included in the physical count. However, the related

$$56,400$ vendor invoice was not included in accounts payable at December $31,2025,$ because the accounts payable copy of

the receiving report was lost.

On January $3,2026,$ a monthly freight bill in the amount of $$8,400$ was received. The bill specifically related to merchandise

purchased in December $2025,$ one$-$half of which was still in the inventory at December $31,2025.$ The freight charges were not

included in either the inventory or in accounts payable at December $31,2025.$

$($a$1)$ Prepare a schedule of adjustments as of December $31,2025,$ to the initial amounts per Sheridan's accounting records. $($If an

amount reduces the account balance then enter either with a negative sign preceding the number, e$.$g$.-15,000$ or in parenthesis, e$.$g$.(15,000).)$