value: 10.00 points Based on its physical count of inventory in its warehouse at year-end, December 31 of the current year, Madison Company planned to report inventory of $34,700. During the audit, the independent CPA developed the following additional information a. Goods from a supplier costing $650 are in transit with UPS on December 31 of the current year. The terms are FOB shipping point (explained in the "Required" section). Because b. Madison delivered samples costing $1,820 to a customer on December 27 of the current year, with the understanding that they would be returned to Madison on January 15 of the c. On December 31 of the current year, goods in transit to customers, with terms FOB shipping point, amounted to $6,800 (expected delivery date January 10 of the next year). Because d. On December 31 of the current year, goods in transit to customers, with terms FOB destination, amounted to $3,100 (expected delivery date January 10 of the next year). Because the these goods had not yet arrived, they were excluded from the physical inventory count. next year. Because these goods were not on hand, they were excluded from the inventory count. the goods had been shipped, they were excluded from the physical inventory count. goods had been shipped, they were excluded from the physical inventory count. Required Madison's accounting policy requires including in inventory all goods for which it has title. Note that the point where title (ownership) changes hands is determined by the shipping terms in the sales contract. When goods are shipped "FOB shipping point," title changes hands at shipment and the buyer normally pays for shipping. When they are shipped "FOB destination," title changes hands on delivery, and the seller normally pays for shipping. Begin with the $34,700 inventory amount and compute the correct amount for the ending inventory. "If no adjustment is necessary, enter a $0 in the cell."). Item Ending inventory (physical count on December 31 of the current year) 34,700 a. Goods purchased and in transit b. Samples out on trial to customer c. Goods in transit to customer d. Goods sold and in transit Correct inventory, December 31 , current year