Based on a physical count of inventory in its warehouse at year-end (12/31), Kratch Company planned to report inventory of $35,000. During the audit, the independent CPA found the following information: a. Goods costing $700 from a supplier shipped FOB shipping point were in transit on December 31. b. Kratch delivered product samples costing $1,520 to a customer on December 27 with the understanding that they would be returned in mid-January. c. On December 31, goods in transit to customers, with terms FOB shipping point, amounted to $5,800. d. On December 31, goods in transit to customers, with terms FOB destination, amounted to $1,600. Required: Compute the correct amount of inventory that should be reported on Madisons balance sheet at December 31.