Werth Company asks you to review its December 31, 2012, inventory values and prepare the necessary adjustments to the books. The following information is given to you.

1. Werth uses the periodic method of recording inventory. A physical count reveals $272,707 of inventory on hand at December 31, 2012.
2. Not included in the physical count of inventory is $12,098 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.
3. Included in inventory is merchandise sold to Bubbey on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $14,861 on December 31. The merchandise cost $8,533, and Bubbey received it on January 3.
4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $18,146. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.
5. Not included in inventory is $9,915 of merchandise purchased from Minsky Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.
6. Included in inventory was $12,119 of inventory held by Werth on consignment from Jackel Industries.
7. Included in inventory is merchandise sold to Sims f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $21,943 on December 31. The cost of this merchandise was $13,375, and Sims received the merchandise on January 5.
8. Excluded from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing $1,742 which had been sold to a customer for $3,019. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.