A company took a physical inventory at the end of the year and determined that $810,000 of goods were on hand. In addition, the following items were not included in the physical count:
Management determined that $96,000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count)
a. The company sold $40,000 worth of inventory f.o.b. destination.
b. What amount should Bell report as inventory at the end of the year?