Streuling Inc.is preparing its 2015 year-end financial statements. Prior to any adjustments, inventory is valued at $76,050. The following information has been found relating to certain inventory transactions:

(a) Goods valued at $11,000 are on consignment with a customer. These goods are not included in the $76,050 inventory figure.

(b) Goods costing $2,700 were received from a vendor on Januarty 5, 2016. The related invoice was recieved and recorded on January 12,2016. The goods were shipped on December 31, 2015, terms FPB shipping point

(c) Goods costing $8.500 were shipped December 31,2015 and were delivered to the customer on January 2,2016. the terms of the invoice were FOB shipping pint. the goods were included in ending inventory for 2015 even though the sale was recorded in 2015

(d) A $3,500 shipment of goods to a customer on 12/31, terms FOB destination, was not included in the year-end inventory. The goods cost $2600 and were delivered to the customer on 1/8/16. The sale was properly recorded in 2016

(e) An invoice for goods costing $3500 was recieved and recorded as a purchase on 12/31/15. The related goods, shipped FOB destination, were received on 1/2/16, and thus were not included in the physical inventory

(f) Goods valued at $6500 are on consignment from a vendor. These goods are not included in the year-end inventory figure.

(g) A $10500 shipment of goods to a customer on 12/30/15, terms FOB destination, was recorded as a sale in 2016. The goods, costing $8200 and delivered to the customer on 1/6/16, were not included in 2015 ending inventory.

Instructions:

1. Determine the appropriate accounting treatment for each of the preceding terms. Justify your answers.

2. Compute the proper inventory amount to be reported on Streuling Inc.'s balance sheet for the year-ended December 31, 2015.

3. By how much would net income have been misstated if no adjustments were made for the given transactions? Ignore income taxes