Bean Company is concerned about the accuracy of its year-end inventory balance. Inventory shows a year-end balance of \(\$ 326,000\). Discussions with the company accountant reveal the following.

1. Bean received goods costing \(\$ 49,000\) on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive on December 31. This purchase was included in the ending inventory of \(\$ 326,000\).
2. Bean sold goods costing \(\$ 41,000\) to Cusa Company, FOB shipping point, on December 28 for \(\$ 65,000\). The goods are not expected to arrive at Cusa until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
3. The physical count of the inventory did not include goods costing \(\$ 89,000\) that were shipped FOB destination to Bean on December 27 and were still in transit at year-end.
4. Bean received goods costing \(\$ 27,000\) on January 2 . The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count.
5. Bean sold goods costing \(\$ 38,000\) to Limerick Co. for \(\$ 55,000\). The goods were shipped FOB destination on December 30. The goods were received by Limerick on January 8 and were not included in Bean's physical inventory.

Instructions

a. Determine Bean's correct inventory amount on December 31 .

b. What correcting entry would have to be made for item 4 ?