Premier Bank and Trust is considering giving Alou Company a loan. Before doing so.

they decide that further discussions with Alou's accountant may be desirable. One area of particular concern is the inventorv account, which has a year-end balance of S297.000. Discussions with the accountant reveal the following.

1. .Alou sold goods costing S38.000 to Comerica Company. FOB shipping point, on December 28. The goods are not expected to arrive at Comerica until January 12. The goods were not included in the physical inventory because they were not in the warehouse.

2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Alou FOB destination on December 27 and were still in transit at year-end.

3. Alou received goods costing S17.000 on January 2. The goods were shipped FOB shipping point on December 26 by Galant Co. The goods were not included in the physical count.

4. Alou sold goods costing S35.000 to Emerick Co.. FOB destination, on December 30. The goods were received at Emerick on January 8. They were not included in Alou"s physical inventory.

5. Alou received goods costing $44,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of S297.000.

Instructions Determine the correct inventory amount on December 31.