The following is a list of events that occurred during the year end preparation of the financial statements of Labelle Supplies. Labelle has a December 31 fiscal year end and uses a perpetual inventory system.

1.

When taking the inventory count, some items were omitted from the count because they were outside, under a foot of snow.

2.

Goods Labelle was holding on consignment for other merchants were included in the inventory count.

3.

Goods, returned to Labelle from a customer and received by Labelle one day before the inventory count, were set aside and not counted. Before December 31, Labelle sent a full credit to the customer although it had not inspected the merchandise to decide what to do with it. Later, inspection determined the inventory to be in excellent condition.

4.

Goods, held on consignment for Labelle, were not included in the inventory count.

5.

Defective inventory Labelle was about to send back to their supplier was not counted. Early in January, Labelle returned the goods to the supplier for a full credit.

(a)