In an annual audit at December 31, 2016, you find the following transactions near the closing date (Click the icon to view the transactions.) Requirements a. State whether the merchandise should be included in the clients inventory b. Give your reason for your decision on each item. (AICPA adapted) Requirement a. State whether the merchandise should be inckuded in the dlients inventory Include or Exclude Merchandise? Exclude Exclude Include Include Exclude Transaction 2. 5 Requirement b. Give your reason for your decision on each iem. (AlCPA adapted) Transacion 1. Merchandise costing $625 was received on December 28, 2016, and the invoice was not recorded. You located i in the hands of the purchasing agent, it was marked on consignment. Goods held "on consignment 2. A packing case containing products costing $816 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked told for shipping instructions. Your investigation revealed that the customer's order was dated December 18, 2016 but that the case was shipped and the customer billed on January 10, 2017. The product was a stock item of your client Normally title to a stock item 3. Merchandise received on January 3, 2017, costing $720 wa entered in the acqsions journal on January 4, 2017. The invoice showed shipment was made Choose from any drop-down list and then continue to the next question 3 Merchandise received on January 3, 2017, costing $720 was entered in the acquisitions journal on January 4, 2017. The invoice showed shipment was made FOB supplier's warehouse on December 31, 2016. Because it was not on hand December 31, it was not included in inventory Title to goods shipped F.O.B. shipping point normally passes to the buyer 4 Merchandise costing S1.822 was received on January 3,2017, and the related acquisition invoice recorded January 5. The invoice showed the shipment was This merchandise should be 5. A special machine, fabricated to order for a customer, made on December 29, 2016, FOB destination. was finished and in the shipping room on December 31, 2016. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2017 The machine Title to custom made-merchandise Choose from any drop-down list and then continue to the next question. 5. A special machine, fabricated to order for a customer, was finished and in the shipping room on December 31, 2016. The customer was billed on that date and the machine excluded from inventory, although it was shipped on January 4, 2017 Title to custom made-merchandise The machine Choose from any drop-down list and then continue to the next