Determining Merchandise to be Included or Excluded from Ending Inventory

The unadjusted inventory balance of Sara Ann Corp. is $450,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized.

a. On December 31, the physical inventory excluded $450 of merchandise inventory shipped to Sara Ann Corp. from a vendor f.o.b. shipping point that arrived on January 1, 2021.

b. On December 31, the physical inventory excluded $16,200 of merchandise inventory held on consignment by a customer. Sara Ann Corp. is the consignor.

c. On December 31, the physical inventory excluded $720 of merchandise held on consignment. The consignor is Sara Anns largest vendor.

d. $16,200 of in-transit merchandise was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28, 2020, and arrived at the customer on December 31, 2020.

e. Goods are in-transit from a vendor to Sara Ann on December 31, 2020. The invoice cost was $10,800 and the goods were shipped f.o.b. shipping point on December 28, 2020. The merchandise was excluded from the physical inventory count because they had not been delivered.

f. Merchandise with a cost of $270 is held in the receiving department for return. The merchandise was included from the physical inventory count.

Required

Considering items a through f, determine the adjusted inventory balance for Sara Ann Corp.

Adjusted inventory balance on December 31, 2020: $???