Culver Company, a manufacturer of small tools, provided thefollowing information from its accounting records for the yearended December 31, 2017.

Inventory at December 31, 2017 (based on physical count ofgoods in Culver’s plant, at cost, on December 31, 2017)		$1,594,780
Accounts payable at December 31, 2017		1,165,100
Net sales (sales less sales returns)		8,629,100

Additional information is as follows.

1.		Included in the physical count were tools billed to a customerf.o.b. shipping point on December 31, 2017. These tools had a costof $31,650 and were billed at $40,650. The shipment was on Culver’sloading dock waiting to be picked up by the common carrier.
2.		Goods were in transit from a vendor to Culver on December 31,2017. The invoice cost was $76,650, and the goods were shippedf.o.b. shipping point on December 29, 2017.
3.		Work in process inventory costing $30,650 was sent to anoutside processor for plating on December 30, 2017.
4.		Tools returned by customers and held pending inspection in thereturned goods area on December 31, 2017, were not included in thephysical count. On January 8, 2018, the tools costing $32,650 wereinspected and returned to inventory. Credit memos totaling $47,650were issued to the customers on the same date.
5.		Tools shipped to a customer f.o.b. destination on December 26,2017, were in transit at December 31, 2017, and had a cost of$26,650. Upon notification of receipt by the customer on January 2,2018, Culver issued a sales invoice for $42,650.
6.		Goods, with an invoice cost of $27,650, received from a vendorat 5:00 p.m. on December 31, 2017, were recorded on a receivingreport dated January 2, 2018. The goods were not included in thephysical count, but the invoice was included in accounts payable atDecember 31, 2017.
7.		Goods received from a vendor on December 26, 2017, wereincluded in the physical count. However, the related $56,650 vendorinvoice was not included in accounts payable at December 31, 2017,because the accounts payable copy of the receiving report waslost.
8.		On January 3, 2018, a monthly freight bill in the amount of$8,650 was received. The bill specifically related to merchandisepurchased in December 2017, one-half of which was still in theinventory at December 31, 2017. The freight charges were notincluded in either the inventory or in accounts payable at December31, 2017.

Prepare a schedule of adjustments as of December 31, 2017, to theinitial amounts per Culver’s accounting records.