The Marigold Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use.

1.		An invoice for $8,700, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that the materials were received on December 28, 2020.
2.		Materials costing $8,000 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns were entered into Marigolds general ledger on December 28, even though the returned items did not arrive at the vendors office until January 6, 2021.
3.		Materials costing $28,700, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a railroad car on the companys siding on that date and had not been unloaded.
4.		An invoice for $8,100, terms f.o.b. shipping point, was received and entered on December 30, 2020. The receiving report shows that the materials were received on January 4, 2021, and the bill of lading shows that they were shipped on January 2, 2021.
5.		Materials costing $19,900 were received on December 30, 2020. No entry was made for them as at that date, because they were ordered with a specified delivery date of no earlier than January 10, 2021.
6.		Materials costing $20,000 were received on December 29, 2020. The suppliers warehouse was full and the supplier asked Marigold to hold these items on its behalf and has also insured these items for the period that Marigold will be holding them. The purchase terms indicate that the supplier will buy these items back from Marigold in early January 2021 at $20,000 plus storage fees.
7.		Materials costing $5,900 were received on December 20, 2020, on consignment from P. Perry Company.

1.Prepare any correcting journal entries that are required at December 31, 2020, assuming that the books have not been closed

2.Indicate which entries must be reversed after closing so that the next periods accounts will be correct.