Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ultim Corp. is $280,000 on December 31 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 $700 of merchandise inventory set aside for expected shipment to a customer. b. On December 31 , the physical inventory excluded $2,800 of merchandise inventory out on consignment in a customer's showroom. c. On December 31 , the physical inventory excluded $2,240 of merchandise held on consignment. f. A return to a vendor of merchandise for $2,800 was in transit on December 31 and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point on December 30 . Required Review items a through f and determine the adjusted inventory balance for year-end December 31. Adjusted inventory balance on December 31