PROBLEM: A company takes a physical inventory count near the end of Year One and arrives at a total of $390,000. The company made two sales near the end of Year One. Because the merchandise was no longer present, it was not included in this count. The independent auditor is now attempting to discover whether the Year One inventory balance should be adjusted. The first sale was inventory costing $6,000 but sold for $11,000 and shipped to a customer on December 29, Year One, with delivery in four days. This merchandise was sold with terms FOB destination. The second sale was inventory costing $9,000 but sold for $16,000 and shipped to a customer on December 30, Year One, with delivery in five days. This merchandise was sold with terms FOB shipping point. What is the proper year-end balance for inventory?