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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text: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.
Note: Enter debits before credits.
3
To record the elimination of consignment inventory, which does not belong to
SLC.
Record entry
4
5
General Journal
Clear entry
Debit
Credit
View general journal
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education