7. Merchandise inventory includes: A. All goods owned by a company and held for sale B. All goods in transit C. All goods on consignment D. Only damaged goods E. Only items that are on the shelf 4. Buffalo Company reported a December 31 ending Inventory balance of $412,000. The following additional information is also available: The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following yehr. The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000 Based on this information, the correct balance for ending inventory on December 31 is: Multiple Choice $374.000 o 16000