Premier Bank and Trust is giving Alou Company a loan. Before doing so, management decides that added discussions with Alou's accountant may be desirable. One area of particular concern is inventory account, which has a year-end balance of $297,000. Discussions with accountant reveal the subsequent.
1. Alou sold goods costing $ 38,000 to Comerico Company, FOB shipping point, on 28th December. The goods are not expected to arrive at Comerico until 12th January. The goods were not included in physical inventory because they were not in warehouse.
2. The physical count of inventory did not include goods costing $95,000 that were shipped to Alou FOB destination on 27th December and were still in transit at year-end.
3. Alou received goods costing $19,000 on January 2. The goods were shipped FOB shipping point on 26th December by Grant Co. The goods were not included in physical count.
4. Alou sold goods costing $35,000 to Emerick Co., FOB destination, on 30th December. The goods were received at Emerick on January 8. They were not included in Alou's physical inventory.
5. Alou received goods costing $44,000 on 2nd January that were shipped FOB shipping point on 29th December. The shipment was a rush order that was supposed to arrive 31st December. This purchase was included in the ending inventory of $297,000.
Evaluate the correct inventory amount on 31st December.