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Exerciss

$86\mathrm{.}1$V$($LO $1)$ Premier Bank and Trust is considering giving Alou Company a loan. Before doing so$,$

management decides that further discussions with Alou's. accountant may be desirable. One area of

particular concern is the inventory account, which has a year$-$end balance of $297,000.$ Discussions with

the accountant reveal the following.

Alou sold goods costing $38,000$ to Comerico Company, FOB shipping point, on December $28.$

The goods are not expected to arrive at Comerico until January $12.$ The goods were not included in

the physical inventory because they were not in the warehouse.

The physical count of the inventory did not include goods costing $91,000$ that were shipped to

Alou FOB destination on December $27$ and were still in transit at year$-$end.

Alou received goods costing $25,000$ on January $2.$ The goods were shipped FOB shipping point on

December $26$ by Grant Co$.$ The goods were not included in the physical count.

Alou sold goods costing $35,000$ to Emerick Co$.,$ FOB destination, on December $30.$ The goods

were received at Emerick on January $8.$ They were not included in Alou's physical inventory.

Alou received goods costing $44,000$ on January $2$ that were shipped FOB shipping point on

December $29.$ The shipment was a rush order that was supposed to arrive December $31.$ This pur$-$

chase was included in the ending inventory of $297,000.$

Instruction:

Determine the correct inventory amount on December $31.$

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