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Gatineau Bank is considering giving Blue Corporation a short-term bank loan. Before doing so, it decides that further discussions with Blue's accountant may be desirable.

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Gatineau Bank is considering giving Blue Corporation a short-term bank loan. Before doing so, it decides that further discussions with Blue's accountant may be desirable. One area of particular concern is the inventory account, which according to a recent physical imventory count has a balance of $261,700 at December 31 . This count agreed with the accounting records. Discussions with the accountant reveal the following: 1. Blue sold goods costing $33,100 to India-based Moghul Company. FOB destination, on December 28. Blue does not expect the goods to arrive in India until January 12. The goods were not included in the physical inventory count, because they were not in the warehouse. 2. The physical imventory count did not include goods costing $90.500 that a supplier shipped to Blue, FOB shipping point, on December 27 and that were still in transit at year end. 3. Blue received goods costing $26,500 on January 2 . The goods were shipped FOB shipping point on December 26 by Cellar Corp. The goods were not included in the physical inventory count. 4. Blue sold goods costing $51,000 to United Kingdom-based Sterling of Britain Ltd. FOB shipping point, on December 30 . Sterling received the goods on January 8 . They were not included in Blue's physical inventory count. 5. On December 31. Schiller Corporation had $31,100 of goods held on consignment for Blue. The goods were not included in the physical inventory count. 6. Included in the ptysical inventory count were $14,000 of parts for outdated products that the company had not been able to sell. It is unlikely that these obsolete parts will have any other use. Determine the correct inventory amount on December 31. (Record the transactions in the order presented in the problem. If an amount reduces the account balance then enter with negative sign preceding the number eg. 45 or parentheses e.g. (45). If the transaction has "NO EFFECT ON INVENTORY", enter Ofor the amount.) Ending inventory physical count $ 1. 2. 3. 4. 5. b. Correct inventory

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