Given the following items and costs as of the balance sheet date, determine the value of Faltron Company's merchandise inventory. $1,000 of goods sold by Faltron to another company are in transit and shipping terms are FOB destination. $2,000 of goods sold by another company to Faltron are in transit and shipping terms are FOB destination. $3,000 of goods owned by Faltron are in the possession of a consignee. Damaged goods owned by Faltron that originally cost $4,000 now have a $500 net realizable value. O $5,500 O $5,000 O $6,500 O $4,500 0 $10,000