The Constance Corporations inventory at December 31, 2021, was $130,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following:

• Merchandise costing $20,000, shipped f.o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022.
• Merchandise costing $50,000 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 $26,000 was being held on hand for Jess Company on consignment.
• Estimated sales returns are 15% of annual sales. Sales revenue was $560,000 with a gross profit ratio of 20%.

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

Multiple Choice

• A $223,325.

• B $191,200.

• C $221,200.

• D $171,200.