The unadjusted trial balance of Blue Spruce Corp., a private company following ASPE, at December 31, 2020 is as follows:

Debit Credit

Cash $11,900

Accounts receivable 59,100

Allowance for doubtful accounts $745

FV-NI investments

8,300

Inventory 56,400

Prepaid insurance 2,856

Prepaid rent 11,748

FV-OCI investments

14,200

Bond investment at amortized cost 19,000

Land 10,200

Equipment 110,000

Accumulated depreciationequipment 16,900

Accounts payable 8,500

Bonds payable 60,000

Common shares 104,400

Retained earnings 100,794

Sales revenue 224,800

Rent revenue 9,600

Purchases 174,500

Purchase discounts 2,300

Freight out 9,150

Freight in 3,550

Salaries and wages expense 30,000

Interest expense 6,300

Miscellaneous expense 835

$528,039 $528,039

Additional information:

1. On November 1, 2020, Blue received $9,600 rent from its lessee for a 12-month lease beginning on that date. This was credited to Rent Revenue.

2. Blue estimates that 6% of the Accounts Receivable balances on December 31, 2020, will be uncollectible. On December 28, 2020, the bookkeeper incorrectly credited Sales Revenue for a receipt of $1,100 on account. This error had not yet been corrected on December 31.

3. After a physical count, inventory on hand at December 31, 2020, was $82,000. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.)

4. Prepaid insurance contains the premium costs of two policies: Policy A, cost of $1,200, two-year term, taken out on April 1, 2020; Policy B, cost of $1,656, three-year term, taken out on September 1, 2020.

5. The regular rate of depreciation is 10% of cost per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no retirements during the year. On December 31, 2019, the balance of Equipment was $92,000.

6. On April 1, 2020, Blue issued at par value 60 $1,000, 12% bonds maturing on April 1, 2024. Interest is paid on April 1 and October 1.

7. On August 1, 2020, Blue purchased at par value 19 $1,000, 12% Larkspur, Inc. bonds, maturing on July 31, 2022. Interest is paid on July 31 and January 31.

8. On May 30, 2020, Blue rented a warehouse for $979 per month and debited Prepaid Rent for an advance payment of $11,748.

9. Blues FV-NI investments consist of shares with total market value of $9,300 as at December 31, 2020.

10. The FV-OCI investment is an investment of 455 shares in Yop Inc., with current market value of $20 per share as of December 31, 2020.

Prepare the year-end adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account.