1. To record the elimination of consignment inventory, which does not belong to SLC.2. To record the rectification for recording $6,700 supplies as inventory.3. To record the elimination of $9,700 cost of goods sold in December for a sale to be made in January.4. To record the elimination of $18,400 sales transaction recorded in December for a sale to be made in January when goods are shipped FOB destination.5. To record the write-down of $3,850 inventory damaged in December and will be scrapped in January, with zero realizable value.**Note:** - A green circle (●) indicates that a journal entry has been entered. **Seemore Lens Company Inventory Adjustment**The Seemore Lens Company (SLC) sells contact lenses with the terms FOB destination. For the year ending December 31, the company reported the following figures:- Inventory: $87,000- Cost of Goods Sold: $454,000**Adjustments to Inventory:**a. **Consignment Inventory**: - $13,400 of lenses included in Inventory are held on consignment.b. **Office Supplies**: - $6,700 of office supplies are incorrectly recorded as Inventory.c. **Pre-sold Lenses**: - $9,700 of lenses, ready to be shipped on January 2, were excluded from Inventory and reported as sold.d. **Damaged Lenses**: - $3,850 of damaged lenses included in Inventory will be scrapped, having zero realizable value.**Required Adjustments**:For each scenario, journal entries are necessary to correct the current reporting, unless specified otherwise.1. **Entry for Consignment Inventory**: - **Action**: Eliminate $13,400 from Inventory as SLC does not own these items.2. **Entry for Office Supplies**: - **Action**: Adjust inventory to remove $6,700 of office supplies mistakenly classified as Inventory.3. **Entry for Pre-sold Lenses**: - **Action**: Update records to reflect the adjustment of $9,700 for lenses reported as sold in December but due for shipment in January.4. **Entry for Damaged Lenses**: - **Action**: Remove $3,850 from Inventory for lenses that will be scrapped.**Note**: No journal entry is required if there is no impact on the financial statements from a transaction/event.This exercise illustrates the importance of accurate inventory accounting and the impact of consignment, misclassification, sales timing, and product damage on financial statements.

Rectifying journal entries are passed in order to record something which was left to be recorded…

Answered: lizable value. Required: For each item,…

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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Blossom Company purchases various types of beach toys for sale to consumers. Listed below are the transactions for the month of June. Blossom uses a perpetual inventory system. June 1 Purchased 25 water tubes for $260 each terms n/30 FOB destination. 8 Returned 4 tubes purchased on June 1 due to defects. Received a full refund for the defective tubes. 10 Freight charges of $100 for the June 1 transaction are paid by the responsible party. 11 Made a complaint about competitive pricing. Received a $400 credit for the water tubes purchased on June 1. 15 Purchased 110 water tubes for $235 each on account, terms 2/10 n/30. 18 Made payment for the amount owing for the June 1 transaction. 20 Made payment for the amount owing for the June 15 transaction.
Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables. Question Content Area Mar. 17: Received $3,240 from Shawn McNeely and wrote off the remainder owed of $5,020 as uncollectible. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Mar. 17 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area July 29: Reinstated the account of Shawn McNeely and received $5,020 cash in full payment. If an amount box does not require an entry, leave it blank. Date Account Debit Credit July 29 - Select - - Select - - Select - - Select - July 29 - Select - - Select - - Select - - Select -
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background info: Green checkmark means that entry is correct, red is wrong. There is only supposed to be a total of 19 entries. look at 1 picture with the complete journal and adjust to fit the allowance method to go into the second table with green and red corrections. The first entry....you are removing the account so you have to remove the allowance and related receivable (2 parts) The second entry...you want to record the cash received, the removal of the allowance and related receivable (3 parts) The third entry...recording a credit sales (2 parts) The fourth entry...setting up receivable and the allowance (2 parts) The fifth entry...record collection of a previously recorded credit sale (2 parts) The sixth entry...record collection of a previously recorded credit sale (2 parts) The seventh entry...adjusting the allowance by reducing the allowance and reducing 5 customer receivable accounts (6 parts) 1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel…
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,710. Line Item Description Amount Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $973,000 for the year. Line Item Description Amount Amount added $fill in the blank 3 Ending balance $fill in the blank 4
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Direct Write-Off Method Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Oct. 2: Received $2,060 from Ian Kearns and wrote off the remainder owed of $2,310 as uncollectible. If an amount box does not require an entry, leave it blank. Oct. 2 Dec. 20: Reinstated the account of Ian Kearns and received $2,310 cash in full payment. If an amount box does not require an entry, leave it blank. Dec. 20-Reinstate Dec. 20-Collection
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ss. Subject :- Accounting
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On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).

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