Spring Corporation uses a Periodic Inventory System and reports Merchandising Inventory on the Balance Sheet at \$90,000 on December 31, 2017, \$95,000 on December 31, 2016, and \$93,500 on December 31, 2015. While preparing the December 31, 2017 Balance Sheet, Spring realizes that a portion of its Inventory includes items on consignment from Brown Company.
Unfortunately, Inventory costing \$800 is included in the Merchandise Inventory balance at December 31, 2016 in error. In addition, Spring finds that a Purchase Return on December 30, 2016 is entered twice. This return in the amount of \$250 is included twice in the Net Purchases amount of \$492,000 that is reported on the 2016 Income Statement. The Inventory amounts reported at the end of 2017 and 2015 are correct.