Sunland Company asks you to review its December $31,2025,$ inventory values and prepare the necessary adjustments to the books. The following information is given to you.

Sunland uses the periodic method of recording inventory. A physical count reveals $$387,569$ of inventory on hand at December $31,2025.$

Not included in the physical count of inventory is $$22,143$ of merchandise purchased on December $15$ from Browser. This merchandise was shipped f$.$o$.$b$.$ shipping point on December $29$ and arrived in January. The invoice arrived and was recorded on December $31.$

Included in inventory is merchandise sold to Champy 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 $$21,120$ on December $31.$ The merchandise cost $$12,128,$ and Champy received it on January $3.$

Included in inventory was merchandise received from Dudley on December $31$ with an invoice price of $$25,790.$ The merchandise was shipped f$.$o$.$b$.$ destination. The invoice, which has not yet arrived, has not been recorded.

Not included in inventory is $$14,091$ of merchandise purchased from Glowser Industries. This merchandise was received on December $31$ after the inventory had been counted. The invoice was received and recorded on December $30.$

Included in inventory was $$17,223$ of inventory held by Sunland on consignment from Jackel Industries.

Included in inventory is merchandise sold to Kemp f$.$o$.$b$.$ shipping point. This merchandise was shipped on December $31$ after it was counted. The invoice was prepared and recorded as a sale for $$31,185$ on December $31.$ The cost of this merchandise was $$17,358,$ and Kemp received the merchandise on January $5.$