Give the iournal entry, assuming, instead, that the account was paid in full u connect PROBLEMS P7-1 Aalyzing Items to Be Included in Inventory Company has just completed a physical inventory count at year-end. December 31 of the current Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FO basis. The inventory amounted to $80.000. During the audit, the independent CPA developed the following additional information: Goods costing $900 were being used by a customer on a trial basis and were excluded from the inven- ry count at December 31 of the current year year, from a supplier, with terms FOB destination (explained in the "Required" section), cost $900. Because these goods had not yet arrived, they were Goods in transit on December 31 of the current excluded from the physical inventory count year, goods in transit to customers, with terms FOB shipping point, amounted to $1,700 (expected delivery date January 10 of next year). Because the goods had been On December 31 of the current shipped, they were excluded from the physical inventory count. because they were on hand, included the latter amount in the physical inventory count. On December 28 of the current year, a customer purchased goods for cash amounting to $2,650 and left them "for pickup on January 3 of next year." Travis Company had paid $1,750 for the goods and On the date of the inventory count, the company received notice from a supplier that goods ordered earlier at a cost of $3,550 had been delivered to the transportation company on December 27 of the current year; the terms were FOB shipping point. Because the shipment had not arrived by December 31 of the current year, it was excluded from the physical inventory count. f On December 31 of the current year, the company shipped $700 worth of goods to a customer, FOB destination. The goods are expected to arrive at their destination no earlier than January 8 of next year. Because the goods were not on hand, they were not included in the physical inventory count. e One of the items sold by the company has such a low volume that management planned to drop it last ear. To induce Travis Company to continue carrying the item, the manufacturer-supplier provided the item on a "consignment basis." This means that the manufacturer-supplier retains ownership of the item, and Travis Company (the consignee) has no responsibility to pay for the items until they are sold to a customer. Each month, Travis Company sends a report to the manufacturer on the number sold and remits cash for the cost. At the end of December of the current year, Travis Company had six of these items on hand; therefore, they were included in the physical inventory count at $950 each