Jello, Inc.'s inventory activity in May was as follows: Record the effect of the May 7 inventory activity on the accounting equation assuming first-in, first-out method is used. Be sure to answer each; if no effect, select "0 No Effect". Assets Liabilities Shareholders' Equity A. 30 Inventory B. (210) Cost of Good Sold C. 0 No Effect Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at December 31. 1. $3,000 of merchandise shipped to a customer on December 30,FOB A. Exclude destination. The goods arrived at the customer's location on January 5 . B. Include 2. $10,000 of merchandise purchased from a supplier, shipped FOB destination on December 28 , in transit at year-end