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 Accounts Payable) are $10,000 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $5,000 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $8,000 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 $15,000. d. Included in SLC's Inventory balance are $3,000 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: Prepare the table showing the balances presently reported for Inventory and Cost of Goods Sold, and then displaying the adjustment(s) needed to correctly account for each of items (a)-(d), and finally determining the appropriate Inventory and Cost of Goods Sold balances. (Enter any decreases to account balances with a minus sign.) Present Balance a. b. C. d. Appropriate Balance Inventory $ Cost of Goods Sold 0 $

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 Accounts Payable) are $10,000 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $5,000 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $8,000 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 $15,000. d. Included in SLC's Inventory balance are $3,000 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: Prepare the table showing the balances presently reported for Inventory and Cost of Goods Sold, and then displaying the adjustment(s) needed to correctly account for each of items (a)-(d), and finally determining the appropriate Inventory and Cost of Goods Sold balances. (Enter any decreases to account balances with a minus sign.) Present Balance a. b. C. d. Appropriate Balance Inventory $ Cost of Goods Sold 0 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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