I need explanation, especially last step and I don't want hand writing. thank you

: The Constance Corporation's inventory at December 31, 2021, was $130,500 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following: . Merchandise costing $20,500, shipped f.o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022. Merchandise costing $50,500 was shipped to a customer f.o.b. shipping point on December 28, 2021, arrived at the customer's location on January 6, 2022. . Merchandise costing $26,500 was being held on hand for Jess Company on consignment. . Estimated sales returns are 20% of annual sales. Sales revenue was $561,000 with a gross profit ratio of 30%. What amount should Constance Corporation report as inventory in its December 31, 2021, balance sheet?