2. Included in the physical count were components billed to a customer f.o.b. shipping point on December 30, 2020. These components had a cost of $26,000 and were billed at $34,000. The shipment was on Miami Fire's loading dock waiting to be picked up by the common carrier. 3. Goods, with an invoice cost of $27,000, received from a vendor at 6:00 p.m. on December 31, 2020, were recorded on a re- ceiving report dated January 2, 2021. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2020. 4. Work in process inventory costing $43,000 was sent to an outside processor for plating on December 28, 2020. 5. Components returned by customers and held pending inspection in the returned goods area on December 31, 2020, were not included in the physical count. On January 5, 2021, the components costing $21,000 were inspected and returned to inventory. Credit memos totaling $36,000 were issued to the customers on the same date. 6. Goods were in transit from a vendor to Miami Fire on December 31, 2020. The invoice cost was $45,200, and the goods were shipped f.o.b. shipping point on December 26, 2020. 7. Components shipped to a customer f.o.b. destination on December 29, 2020, were in transit at December 31, 2020, and had a cost of $15,600. Upon notification of receipt by the customer on January 3, 2021, Miami Fire issued a sales invoice for $23,000. 8. On January 3, 2021, a monthly freight bill in the amount of $15,000 was received. The bill specifically related to merchan- dise purchased in December 2020, one-third of which was still in the inventory at December 31, 2020. The freight charges were not included in either the inventory or in accounts payable at December 31, 2020. Instructions Using the format shown below, prepare a schedule of adjustments as of December 31, 2020, to the initial amounts per Miami Fire's accounting records. Show separately the effect, if any, of each of the eight transactions on the December 31, 2020, amounts. If the transactions would have no effect on the initial amount shown, enter NONE. Accounts Net Sales $16,680,000 Inventory Payable Initial amounts $2,590,000 $1,900,000 Adjustments-increase (decrease) 2 3 4 7 E E E Total adjustments Adjusted amounts