dPremier Bank and Trust is considering giving Sweet Acacia Company a loan. Before doing so, they decide that further discussions with Sweet Acacia's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $423,800. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Sweet Acacia received goods costing $63,700 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $423,800. Sweet Acacia sold goods costing $53,300 to Cusa Company, FOB shipping point, on December 28 for $84,500. The goods are not expected to arrive at Cusa until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $115,700 that were shipped to Sweet Acacia FOB destination on December 27 and were still in transit at year-end. Sweet Acacia received goods costing $35,100 on January 2. The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. Sweet Acacia sold, for $71,500 goods costing $49,400 to Limerick Co., FOB destination, on December 30. The goods were received at Limerick on January 8. They were not included in Sweet Acacia's physical inventory.

Premier Bank and Trust is considering giving Sweet Acacia Company a loan. Before doing so, they decide that further discussions with Sweet Acacia's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $423,800. Discussions with the accountant reveal the following. 1. Sweet Acacia received goods costing $63,700 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $423,800. 2. Sweet Acacia sold goods costing $53,300 to Cusa Company, FOB shipping point, on December 28 for $84,500. The goods are not expected to arrive at Cusa until January 12 . The goods were not included in the physical inventory because they were not in the warehouse. 3. The physical count of the inventory did not include goods costing $115,700 that were shipped to Sweet Acacia FOB destination on December 27 and were still in transit at year-end. 4. Sweet Acacia received goods costing $35,100 on January 2 . The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. 5. Sweet Acacia sold, for $71,500 goods costing $49,400 to Limerick Co, FOB destination, on December 30 . The goods were received at Limerick on January 8 . They were not included in Sweet Acacia's physical inventory. (a) Determine the correct inventory amount on December 31. The correct inventory amount on December 31 eTextbook and Media List of Accounts Attempts: 0 of 3 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above