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Record Journal Entries to correct Inventory Misreporting for the following information Debit Credit Seemore Lens Company SLC sells contact lenses FOB destination

Record Journal Entries to correct Inventory Misreporting for the following information...

    Debit Credit
a.      
       
       
       
b.      
       
       
       
c.      
       
       
       
d.      
       

Seemore Lens Company(SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $70,000 and Cost of goods sold of $420,000.

A. Included in Inventory (and Accountspayable) are $10,000 of lenses held on consignment.

B. Included in the Inventory Balance are $5,000 of office supplies held in SLC's warehouse.

C. Excluded from the inventory balance are $8,000 of lenses in the warehouse, ready to send to customers on January1. SLC reported these lenses as sold on December 31, at a price of $15,000.

D. Included in the Inventory balance are $3,000 of lenses that were damaged in December and will be scrapped in Janurary, with no recoverable value.

  Inventory Cost of Goods Sold
Present Balance $70,000 $420,000
a. ($10,000) $10,000
b. ($5,000) $5,000
c. $8,000 ($15,000)
d. ($3,000) $3,000
Appropriate Balance $60,000 $423,000

May 14 2020 View more View Less

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