Identify whether the merchandise described should be INCLUDED or EXCLUDED in the Inventory on December 31, 2016.. Write the reason why it is INCLUDED OR EXCLUDED

1. Merchandise costing P500,000 sold and paid by the customer for P550,000 on December 28, 2016, was set aside for shipment on January 6, 2017. Being on hand, it was included in the inventory.

2.Merchandise received on January 7, 2017 was entered in the purchase journal on January 8, 2017. Invoice showed shipment was made FOB shipping point on December 30, 2016

3. Merchandise costing P12,750 was received on January 8, 2017, and purchase invoice recorded on January 10, 2017 Shipment was made on December 27, 2016 FOB destination.

4. A product was sold on an installment basis on December 31, 2016. It was delivered to the customer on that date. The product was included in inventory because the company still holds legal title. The companys experience suggests that full payment on the installment sale is reasonably assured.