Reference no: EM133112000

Question - Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $90,000 and Cost of Goods Sold of $460,000.

a. Included in Inventory (and Accounts Payable) are $14,000 of lenses SLC is holding on consignment.

b. Included in SLC's Inventory balance are $7,000 of office supplies held in SLC's warehouse.

c. Excluded from SLC's Inventory balance are $10,000 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 $19,000.

d. Included in SLC's Inventory balance are $4,000 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.