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Umatilla Bank and Trust is considering giving Sandhill Company a loan. Before doing so, it decides that further discussions with Sandhill's accountant may be desirable.

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Umatilla Bank and Trust is considering giving Sandhill Company a loan. Before doing so, it decides that further discussions with Sandhill's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $263,510. Discussions with the accountant reveal the following. 1. Sandhill shipped goods costing $60,340 to Whispering Company FOB shipping point on December 28 . The goods are not expected to reach Whispering 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 $97,600 that were shipped to Sandhill FOB destination on December 27 and were still in transit at year-end. 3. Sandhill received goods costing $27,240 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice Co0. The goods were not included in the physical count. 4. Sandhill shipped goods costing $49,400 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8. They were not included in Sandhill's physical inventory. 5. Sandhill received goods costing $45,300 on 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 $263,510. Determine the correct inventory amount on December 31. Correct inventory amount on December 31 $ Umatilla Bank and Trust is considering giving Sandhill Company a loan. Before doing so, it decides that further discussions with Sandhill's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $263,510. Discussions with the accountant reveal the following. 1. Sandhill shipped goods costing $60,340 to Whispering Company FOB shipping point on December 28 . The goods are not expected to reach Whispering 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 $97,600 that were shipped to Sandhill FOB destination on December 27 and were still in transit at year-end. 3. Sandhill received goods costing $27,240 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice Co0. The goods were not included in the physical count. 4. Sandhill shipped goods costing $49,400 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8. They were not included in Sandhill's physical inventory. 5. Sandhill received goods costing $45,300 on 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 $263,510. Determine the correct inventory amount on December 31. Correct inventory amount on December 31 $

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