Sheridan Company is concerned about the accuracy of its year$-$end inventory balance. Inventory shows a year$-$end balance of $$327,800.$ Discussions with the company accountant reveal the following.

Sheridan received goods costing $$50,800$ on January $2$ that were shipped FOB destination on December $29.$ The shipment was a rush order that was supposed to arrive on December $31.$ This purchase was included in the ending inventory of $$327,800.$

Sheridan sold goods costing $$42,800$ to Cusa Company, FOB shipping point, on December $28$ for $$66,800.$ The goods are not expected to arrive at Cusa until January $12.$ The goods were not included in the physical inventory because they were not in the warehouse.

The physical count of the inventory did not include goods costing $$90,800$ that were shipped FOB destination to Sheridan on December $27$ and were still in transit at year$-$end.

Sheridan received goods costing $$28,800$ on January $2.$ The goods were shipped FOB shipping point on December $26$ by Noble Co$.$ The goods were not included in the physical count.

Sheridan sold goods costing $$39,800$ to Limerick Co$.$ for $$56,800.$ The goods were shipped FOB destination on December $30.$ The goods were received by Limerick on January $8$ and were not included in Sheridan's physical inventory.

Determine Sheridan's correct inventory amount on December $31.$

Correct inventory amount

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List of Accounts

Using the perpetual inventory system, what correcting entry would have to be made for item $4?($Credit account titles are automatically indented when the amount is entered. Do not indent monually. List all deblt entries before credlt entries. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

Debit

Credit

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