Goods on consignment should be included in the inventory of: Both the original party (consignor) and the party acting as a sales agent (consignee). The party acting as the sales agent (consignee) but not the original party (consignor). The original party (consignor) but not the consignee acting as a sales agent. Neither the consignor nor the consignee should count the items as inventory. Buddy's Co. had an initial inventory balance of $500,000 based on a physical count priced at cost prior to entries. The following two independent transactions involving inventory occurred during December 2021. 1 - Buddy purchased inventory costing $45,000 (FOB shipping point) from a vendor on December 28, 2021. The inventory was shipped on December 30, 2021 and received by Buddy on January 5, 2022. 2 - Buddy sold inventory to a customer valued at $60,000 (FOB destination point) on December 29, 2021. The inventory was still in transit at year end on December 31 , 2021. What amount should Buddy report as inventory in its December 31, 2021, balance sheet? $545,000 $605,000 $500,000 $560,000 Holt Inc purchased pants from Ace Co. on May 25, 2019, and received an invoice with a list price of $5,000 with payment terms of 2/10,n/30. If Holt pays the invoice on May 27, 2019, what amount should they record as cash paid? \begin{tabular}{l} $4,900 \\ $500 \\ $,500 \\ \hline$5,000 \end{tabular}