Sunland Company took a physical inventory on December 31 and determined that goods costing $150,000 were on hand. Not included in the physical count were $20,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $17,500 of goods sold to Alvarez Company for $25,500, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sunland report as its December 31 inventory? Sunland ending Inventory $ 138000

Sunland Company took a plysical inventory on December 31 and determined that goods costing $150,000 were on hand. Not included in the physical count were $20,000 of Boods purchased from Pelzer Corporation, FOB shipping point, and $17,500 of goods sold to Alvarez Company for \$25,500, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sunland report as its December 31 inventory? Sunland ending Inventory