Answer:
Seemore Lens Company (SLC)
Journal Entries to correct the balances presently reported:
a) Debit Accounts payable $13,200
Credit Inventory $13,200
To record lenses held on consignment.
b) Debit Office Supplies $6,600
Credit Inventory $6,600
To record office supplies.
c) Debit Inventory $9,600
Credit Cost of goods sold $9,600
To exclude from cost of goods sold lenses in the warehouse for January 2 delivery.
c) Debit Sales Revenue $18,200
Credit Accounts Receivable $18,200
To exclude from sales revenue lenses not yet sold.
d) Debit Cost of goods sold $3,800
Credit Inventory $3,800 (Scrap)
To record the cost of scrap.
Explanation:
a) Data and Analysis:
Reported Inventory = $86,000
Reported Cost of Goods Sold = $452,000
Transactions:
a) Accounts payable $13,200 Inventory $13,200
b) Office Supplies $6,600 Inventory $6,600
c) Inventory $9,600 Cost of goods sold $9,600
c) Sales Revenue $18,200 Accounts Receivable $18,200
d) Cost of goods sold $3,800 Inventory $3,800 (Scrap)
