31)

The Constance Corporations inventory on December 31, 2024, was $131,500 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following:

Inventory costing $21,500, shipped f.o.b. shipping point from a vendor on December 27, 2024, was received by Constance on January 5, 2025.

Inventory costing $51,500 was shipped to a customer f.o.b. shipping point on December 28, 2024, arrived at the customers location on January 6, 2025.

Inventory costing $27,500 was being held on hand for Jess Company on consignment.

Estimated sales returns are 15% of annual sales. Sales revenue was $563,000 with a gross profit ratio of 20%.

What amount should Constance Corporation report as inventory in its December 31, 2024, balance sheet?

$171,560

$223,060

$193,060

$226,685