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ES.3 (LO 2) (Inventoriable Goods and Costs) ASsume that in an annual audit of Harlowe Inc. at December 31, 2020, you find the following transactions near the closing date. 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2020. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2021. 2. Merchandise costing $2,800 was received on January 3, 2021, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2020, f.o.b. destination. 3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked "Hold for shipping instructions." Your investigation revealed that the customer's order was dated December 18, 2020, but that the case was shipped and the customer billed on January 10, 2021. The product was a stock item of your client. 4. Merchandise received on January 6, 2021, costing $680 was entered in the purchase journal on January 7, 2021. The invoice showed shipment was made f.o.b. supplier's warehouse on December 31, 2020. Because it was not on hand at December 31, it was not included in inventory 5. Merchandise costing $720 was received on December 28, 2020, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked "on consignment." Instructions0 Assuming that each of the amounts is material, state whether the merchandise should be included in the client's inventory, and give your reason for your decision on each item

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