Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventoryof $84,000 and Cost of Goods Sold of $448,000.a. Included in Inventory (and Accounts Payable) are $12,800 of lenses SLC is holding on consignment.b. Included in SLC's Inventory balance are $6,400 of office supplies held in SLC's warehouse.c. Excluded from SLC's Inventory balance are $9,400 of lenses in the warehouse, ready to send to customers on January 2. SLCreported these lenses as sold on December 31, at a price of $17,800.d. Included in SLC's Inventory balance are $3,700 of lenses that were damaged in December and will be scrapped in January, withzero realizable value.Required:Prepare the table showing the balances presently reported for Inventory and Cost of Goods Sold, and then displaying theadjustment(s) needed to correctly account for each of items (a)-(d), and finally determining the appropriate Inventory and Cost ofGoods Sold balances. (Enter any decreases to account balances with a minus sign.)Present Balanceab.Cd.Appropriate BalanceInventoryCost of Goods Sold

Let's break down each adjustment and why it is applied to either the Inventory or Cost of Goods Sold…

Answered: Seemore Lens Company (SLC) sells…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Similar questions

Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $72,000 and Cost of Goods Sold of $424,000. a. Included in Inventory (and Accounts Payable) are $10,400 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $5,200 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $8,200 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 $15,400. d. Included in SLC's Inventory balance are $3,100 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Transaction a.…
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $87,000 and Cost of Goods Sold of $454,000. a. Included in Inventory (and Accounts Payable) are $13,400 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $6,700 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $9,700 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 $18,400. d. Included in SLC's Inventory balance are $3,850 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list > To record the elimination of consignment…
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year endedDecember 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 held on consignment.b. Included in the Inventory balance are $5,000 of office supplies held in SLC’s warehouse.c. Excluded from the Inventory balance are $8,000 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $15,000.d. Included in the Inventory balance are $3,000 of lenses that were damaged in December andwill be scrapped in January, with no recoverable value.Required:Create a table showing the balances presently reported for Inventory and Cost of Goods Sold, andthen displaying the adjustment(s) needed to correctly account for each of items ( a )–( d ), and finallydetermining the appropriate Inventory and Cost of Goods Sold balances.
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $76,000 and Cost of Goods Sold of $432,000. Included in Inventory (and Accounts Payable) are $11,200 of lenses SLC is holding on consignment. Included in SLC’s Inventory balance are $5,600 of office supplies held in SLC’s warehouse. Excluded from SLC’s Inventory balance are $8,600 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 $16,200. Included in SLC’s Inventory balance are $3,300 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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a. Included in Inventory (and Accounts Payable) are $12,000 of lenses SLC is holding on consignment. b. Included in SLC's Inventory balance are $6,000 of office supplies held in SLC's warehouse. c. Excluded from SLC's Inventory balance are $9.000 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 $17.000. d. Included in SLC's Inventory balance are $3,500 of lenses that were damaged in December and will be scrapped in January, with zero realizable value. Required: For each item, (a)-(d). prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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