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Splish Brothers bank and trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's accountant may be desirable. One area of particular concern is the inventory account which has a year and balance of $319,000 discussions with the accountant reveal the following.

1. Pohl shipped goods costing $63,800 to Hemlock Company FOB shipping point on December 28 . The goods are not expected to reach Hemlock 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 $95,000 that were shipped to Pohl FOB destination on December 27 and were still in transit at year-end. 3. Pohl received goods costing $29,000 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 4. Pohi shipped goods costing $59,160 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8 . They were not included in Pohl's physical inventory. 5. Pohl received goods costing $48,720 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 $319,000

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