Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josefs accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $297,580. Discussions with the accountant reveal the following.

1.	Josef sold goods costing $40,370to Sorci Company, FOB shipping point, on December 28. The goods are not expected to arrive at Sorci until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2.	The physical count of the inventory did not include goods costing $97,470that were shipped to Josef FOB destination on December 27 and were still in transit at year-end.
3.	Josef received goods costing $29,480on January 2. The goods were shipped FOB shipping point on December 26 by Solita Co. The goods were not included in the physical count.
4.	Josef sold goods costing $30,690to Natali Co., FOB destination, on December 30. The goods were received at Natali on January 8. They were not included in Josef's physical inventory.
5.	Josef received goods costing $41,810on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $297,580.