Laras Gentle Clothing (LGC) sells gently used womens clothing. LGC receives used clothing from individuals to display in the shop. LGC receives 40% of the selling price and pays the remaining 60% to the individual who brought the clothing in. LGC takes possession of the clothing; however, payments are made to the individuals who drop off the clothing only once the items are sold. During the year ended December 31, 2020, LGC sold clothing that generated revenue of $110,800 on gross proceeds of $277,000. LGC also had goods priced at $27,700 displayed in the store at December 31, 2020.

(a) On December 31, 2020, what is the amount of inventory that should be recorded by LGC?