Inventory Values As of the date of the physical inventory, the following items and their inventory values were: Item Amount $14,000 $25,000 Unmatched receiving reports Customer goods shipped, but not billed Vendor drop shipments (goods shipped directly from vendors to customers) not invoiced or billed Goods in transit from vendor $13,000 $10,000 $7,000 $12,000 Goods specially billed and in-transit to customers (terms net 30, F.O.B. destination) Vendors' goods held on consignment (included in physical inventory count) Goods in-transit from vendors (F.O.B. destination) Customer returns (goods inspected and counted, but paperwork not yet sent to accounting) $16,000 $4,000 Pomike Co. is a regional auto parts distributor. The company's system automatically bills customers net 10, F.O.B. shipping point. Pomike vendors' terms are net 30, F.O.B. shipping point, unless otherwise specified At the end of year 1. Pomike took a physical inventory, priced the inventory, and then compared it to its book inventory (general ledger Inventory account, which indicated a difference. Review the possible reconciling items in the "inventory Values document under the Exhibit tab to determine the correct adjusted physical and book inventory. The correct difference, if any, at the end of year 1 will be calculated automatically. To enter an amount for a reconclling item, click in the cell and then enter increases as positive whole values and decreases as negative whole values, as appropriate. If a response is zero, enter a zero (0). Note: Unreconciled differences. If any, will be subsequently adjusted by the accountingtaff in a jou al entry Reconciliation of physical to book inventory Physical Book Difference Unadjusted Inventory values $ 356,000 $ 351,000 $5,000 Reconciling items Unmatched receiving reports Customer goods shipped, but not billed Vendor drop shipments Goods in-transit from vendor Goods billed and in transit to customers Vendors goods held on consignment Vendor in-transit goods (F.0.8. destination) Customer returns Total adjustments 0 Adjusted Inventory values $ 356,000 $ 351,000 $ 5,000 0 0