Prepare a statement to calculate the corrected inventory as at 31 December 2024.

• Inventory as per valuation on 10 January 2025: \32,000$
• Adjustment for damaged goods (Jan 8):
  • Cost of damaged goods: \4,000$
  • Net Realizable Value (NRV): Selling Price $-$ Cost to Repair = \3,000 - $500 = $2,500$
  • Since NRV (\2,500)$is lower than cost$($4,000)$, the inventory should be valued at NRV.
  • Write-down adjustment: \4,000 - $2,500 = $1,500$. This amount is subtracted from the inventory.
• Adjustment for omitted goods (Jan 9):
  • Goods costing \800$ were omitted from the physical count. These should be added back.
• Adjustment for goods on sale or return (Jan 5):
  • Goods worth \2,500$ (selling price) were sent out, but ownership had not passed. These goods are still part of Makwema Traders' inventory.
  • Cost of these goods: \frac{\2,500}{1.20} = $2,083.33$.
  • Assuming these goods were not included in the physical count (as they were out with the customer), they need to be added back.

$\text{Corrected Inventory on 10 Jan 2025} = \$32,000 - \$1,500 + \$800 + \$2,083.33 = \$33,383.33$

We need to reverse the effect of transactions that occurred between 1 January 2025 and 10 January 2025.

• Sales (Jan 2):
  • Sales of \18,000$ occurred after 31 December 2024. These goods were part of the inventory on 31 December 2024.
  • Cost of sales: \frac{\18,000}{1.20} = $15,000$. This amount is added back.
• Purchases (Jan 4):
  • Purchases of \10,000$ occurred after 31 December 2024. These goods were not part of the inventory on 31 December 2024.
  • This amount is subtracted.
• Goods taken for personal use (Jan 6):
  • Goods costing \1,200$ were taken after 31 December 2024. These goods were part of the inventory on 31 December 2024.
  • This amount is added back.
• Sales returns (Jan 7):
  • Sales returns of \600$ were received after 31 December 2024. These goods were not part of the inventory on 31 December 2024 (they had been sold).
  • Cost of sales returns: \frac{\600}{1.20} = $500$. This amount is subtracted.

Here is the statement:

$$\begin{array}{|l|l|} \hline \textbf{Item} & \textbf{Amount (\$)} \\ \hline \text{Inventory as per valuation on 10 January 2025} & 32,000 \\ \text{Less: Write-down for damaged goods (Jan 8)} & (1,500) \\ \text{Add: Goods omitted from physical count (Jan 9)} & 800 \\ \text{Add: Goods on sale or return (Jan 5)} & 2,083.33 \\ \hline \textbf{Corrected Inventory on 10 January 2025} & \textbf{33,383.33} \\ \hline \text{Add: Cost of sales (Jan 2)} & 15,000 \\ \text{Less: Purchases (Jan 4)} & (10,000) \\ \text{Add: Goods taken for personal use (Jan 6)} & 1,200 \\ \text{Less: Cost of sales returns (Jan 7)} & (500) \\ \hline \textbf{Corrected Inventory as at 31 December 2024} & \boxed{\mathbf{39,083.33}} \\ \hline \end{array}$$