Sec 16 - Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions with Gallup's accountant may be desirable. One area of particular concern is the Inventory account, which has a balance of $275,000 on 31st December. Discussions with the accountant reveal the following. 1. Gallup sold goods costing $55,000 to Brazil Company FOB shipping point on December 28 . The goods are not expected to reach Brazil until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Gallup FOB destination on December 27 and were still in transit at year-end. 3. Gallup received goods costing $25,000 on January 2 . The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count. 4. Gallup sold goods costing $51,000 to Lamey of Canada FOB destination on December 30. The goods were received in Canada on January 8 . They were not included in Gallup's physical inventory. 5. Gallup received goods costing $42,000 on January 2 that were shipped FOB destination on December 29 . The shipment was a rush order that was supposed to arrive on December 31 . This purchase was included in the ending inventory of $275,000