The Constance Corporations inventory at December 31, 2021, was $132,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following:

• Merchandise costing $22,000, shipped f.o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022.
• Merchandise costing $52,000 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 $28,000 was being held on hand for Jess Company on consignment.
• Estimated sales returns are 20% of annual sales. Sales revenue was $564,000 with a gross profit ratio of 30%.

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

Multiple Choice

• $204,960.

• $182,960.

• $239,085.

• $234,960.