The Constance Corporations inventory at December $31,2021,$ was $$130,500($at cost$)$ based on a physical count of inventory on hand, before any necessary adjustment for the following:

Merchandise costing $$20,500,$ shipped f$.$o$.$b$.$ shipping point from a vendor on December $27,2021,$ was received by Constance on January $5,2022.$

Merchandise costing $$50,500$ was shipped to a customer f$.$o$.$b$.$ shipping point on December $28,2021,$ arrived at the customers location on January $6,2022.$

Merchandise costing $$26,500$ was being held on hand for Jess Company on consignment.

Estimated sales returns are $20\%$ of annual sales. Sales revenue was $$561,000$ with a gross profit ratio of $30\%.$

What amount should Constance Corporation report as inventory in its December $31,2021,$ balance sheet?

Can you explain why we do not subtract $50,500$ from the inventory since it is going to a customer and they maintain ownership at the time of sending it out on december $28$th$?$ Why do we exclude this one explain in detail about this part? Thanks.