Given the following items and costs as of the balance sheet date, determine the value of Faltron Company?s merchandise inventory. - $1.750 goods sold by Faltron to another company. The goods are in transit and shipping terms are FOB destination. - $3.500 goods sold by another company to Faltron. The goods are in transit and shipping terms are FOB destination. - $5.250 owned by Faltron but in the possession of another company, the consignee. - Damaged goods owned by Faltron that originally cost $7,000 but now have a $875 net realizable value. $17,500 $11,375 $9,625 $8,750 $7,875