Waterway Company took a physical inventory on December 31 and determined that goods costing $170,000 were on hand. Not included in the physical count were $23,000 of goods purchased from Pelze Corporation, FOB shipping point, and $20,500 of goods sold to Alvarez Company for $28,500, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Waterway report as its December 31 inventory? Waterway ending Inventory $