Salalah Company asks you to review its December 31, 2019, inventory values and prepare the necessary adjustments to the books. The following information is given to you. The company uses the periodic method of recording inventory. A physical count reveals $84,890 of inventory on hand at December 31, 2019. (1). Included in inventory is merchandise sold to Bahwan LLC on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Bahwan LLC received it on January 3. (2). Included in inventory was merchandise received from Superior Co. on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. (3). Not included in inventory is $8,540 of merchandise purchased from Nizwa Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. (4). Included in inventory is merchandise sold to Sims f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $11,520, and Sims received the merchandise on January 5. (5). Excluded from inventory was a carton labeled Please accept for credit. This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Required: a. Determine the proper inventory balance for Salalah Company at December 31, 2019. b. Prepare any correcting entries to adjust inventory and related accounts to their proper amounts at December 31, 2019. Assume the books have not been closed.