TERMS OF SHIPMENT AND ENDING INVENTORY. On December 31, Archive Products had two shipments of merchandise in transit from different suppliers. The first shipment, which arrived on January 5, was shipped F.O.B. shipping point and had a total invoice price of $28,600. The second shipment, which arrived on January 7, was shipped F.0.B. destination and had a total invoice price of $16,300. The physical inventory taken on December 31 revealed that goods on hand on that date had a total cost of $177,500. Archive uses a periodic inventory system. lol REQUIRED:
What amount should be reported for inventory on the company’s balance sheet at December 31? Show the\adjusting entry or entries to record the ending inventory.