Resgan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Reagan's records are as follows: Inventory at Decenber 31 (based on a physical count of goods in Reagan's warehouse on December 31) $1,480, e0e Accounts payable at December 31: Vendor Terms Атount Baker Corpany Charlic Corpany Dolly Corpany Eagler Company Full Company $ 295, 0e0 248,eee 338,eee 255,0e0 28, 10 days, пet 38 Net 30 Net 30 Net 30 Net 30 Greg Company Net 30 Accounts payable, December 31 $1,120,0ee Sales for the year $9,750,000 Additional Information: 1. Parts held by Reagan on consignment from Charlie, amounting to $230,000, were included in the physical count of goods in Reagan's warehouse and in accounts payable at December 31. 2 Parts totaling $37,000, which were purchased from Full and paid for in December, were sold in the lost week of the year and appropriately recorded es sales of $43,000. The parts were included in the physical count of goods in Reagan's warehouse on December 31 becouse the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28, amounted to $64,000. The customers received the parts on January 6 of the following year. Sales of $70,000 to the customers for the parts were recorded by Reagan on January 2. 4. Retsilers were holding goods on consignment from Reagan, which had a cost of $360,000 and a retail value of $400,000. 5. Goods were in transit from Greg to Resgan on December 31. The cost of the goods was $40,000, and they were shipped f.o.b. shipping point on December 29. 6. A freight bill in the amount of $3,500 specifically relating to merchandise purchased in December, all of which was still in the inventory at December 31, was received on January 3. The freight bill was not included in either the inventory or in sccounts payable at December 31. 7. All the purchases from Baker occurred during the lsst seven days of the year. These items have been recorded in sccounts payable and sccounted for in the physical inventory at cost before discount. Reagen's policy is to pay invoices in time to take odventege of ell discounts, acjust inventory accordingly, and record accounts payable net of discounts. Required: Complete the following schedule of adjustments to the initial amounts. (Amounts to be deducted should be Indicated with a minus sign.) Answer is complete but not entirely correct. Accounts Payable Is Inventory Sales Initial amounts S 1,400,000 1,120,000 s 9,750,000 Adjustments-increase (decrease): 1. 230,000 1,230,000 2. 37,000 3. 70,000 O 4. 360,000 O 5. 40,000 O 40,000 6. 3,500 O 35,000 X 7. 5,900 5,900 x Total adjustments 676,400 1,310,900 70,000 Adjusted amounts S 2,076,400 (190,900) S 9,820,000