Whispering Company asks you to review its December $31,2025,$ inventory values and prepare the necessary adjustments to the books. The following information is given to you.

Whispering uses the periodic method of recording inventory. A physical count reveals $$364,080$ of inventory on hand at December $31,2025.$

Not included in the physical count of inventory is $$20,801$ of merchandise purchased on December $15$ from Browser. This merchandise was shipped f$.$o$.$b$.$ shipping point on December $29$ and arrived in January. The invoice arrived and was recorded on December $31.$

Included in inventory is merchandise sold to Champy on December $30,$ f$.$o$.$b$.$ destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $$19,840$ on December $31.$ The merchandise cost $$11,393,$ and Champy received it on January $3.$

Included in inventory was merchandise received from Dudley on December $31$ with an invoice price of $$24,227.$ The merchandise was shipped fo$.$b$.$ destination. The invoice, which has not yet arrived, has not been recorded.

Not included in inventory is $$13,237$ of merchandise purchased from Glowser Industries. This merchandise was received on December $31$ after the inventory had been counted. The invoice was received and recorded on December $30.$

Included in inventory was $$16,179$ of inventory held by Whispering on consignment from Jackel Industries.

Included in inventory is merchandise sold to Kemp f$.$o$.$b$.$ shipping point. This merchandise was shipped on December $31$ after it was counted. The invoice was prepared and recorded as a sale for $$29,295$ on December $31.$ The cost of this merchandise was $$16,306,$ and Kemp received the merchandise on January $5.$

Excluded from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing $$2,325$ which had been sold to a customer for $$4,030.$ No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged; Whispering will honor the return.

Prepare any correcting entries to adjust Inventory to lts proper amount at December $31,2025.$ Assume the books have not been closed. $($If no entry is required, select $"$Mo entry" for the account tilles and enter ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manuolly. List all debit entries before credit entrles.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$1.$

No Entry

$2.$

$3.$

Accounts Recilvable

$4.$

Imventory

Accounts Payable

$5.$

NoEntry

No Entry

$6$ No Entry

$7.$

$8.$

Sales Returns and Allowances

$4550$

$($To record sales returns$)$

$($To record cost of goods returned$)$