Seemore Lens Company (SLC) manufactures and sells contact lenses. For the year e
ID: 2473621 • Letter: S
Question
Seemore Lens Company (SLC) manufactures and sells contact lenses. For the year ended December 31, the company reported Inventory of $77,000 and Cost of Goods Sold of $434,000. a. Included in Inventory (and Accounts Payable) are $11,400 of lenses held on consignment. b. Included in the Inventory balance are $5,700 of office supplies held in SLC’s warehouse. c. Excluded from the Inventory balance are $8,700 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 $16,400. d. Included in the Inventory balance are $3,350 of lenses that were damaged in December and will be scrapped in January, with no recoverable value Journal Entry Worksheet for: 1. Seemore Lens Company (SLC) manufactures and sells contact lenses. For the year ended December 31, the company reported Inventory of $77,000 and Cost of Goods Sold of $434,000. a. Included in Inventory (and Accounts Payable) are $11,400 of lenses held on consignment. b. Included in the Inventory balance are $5,700 of office supplies held in SLC’s warehouse. c. Excluded from the Inventory balance are $8,700 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 $16,400. d. Included in the Inventory balance are $3,350 of lenses that were damaged in December and will be scrapped in January, with no recoverable value 2. Included in the Inventory balance are $5,700 of office supplies held in SLC’s warehouse. Record the transaction. 3. Excluded from the Inventory balance are $8,700 of lenses in the warehouse, ready to send to customers on January 1. Record the transaction. 4. SLC reported these lenses as sold on December 31, at a price of $16,400. Record the transaction. 5. Included in the Inventory balance are $3,350 of lenses that were damaged in December and will be scrapped in January, with no recoverable value. Record the transaction.
Explanation / Answer
The question is not clear. However, since, the question states "Record the Transaction", I have answered the question with the journal entries.
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The journal entries are as follows:
S.No. Account Titles Debit Credit a) Accounts Payable $10,000 Inventory $10,000 (To record reversal of inventory held on consignment) b) Supplies $5,700 Inventory $5,700 (To record adjustment for office supplies held in inventory) c) Inventory $8,700 Cost of Goods Sold $8,700 (To record the reversal of inventory ready to be shipped) c) Sales Revenue $16,400 Accounts Receivable $16,400 (To record reversal of sale related to the inventory to be shipped) d) Cost of Goods Sold (Loss of Inventory) $3,350 Inventory $3,350 (To record the loss of inventory) Total $44,150 $44,150