Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $76,000 and Cost of Goods Sold of $432,000.
- Included in Inventory (and Accounts Payable) are $11,200 of lenses SLC is holding on consignment.
- Included in SLC’s Inventory balance are $5,600 of office supplies held in SLC’s warehouse.
- Excluded from SLC’s Inventory balance are $8,600 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 $16,200.
- Included in SLC’s Inventory balance are $3,300 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.)
