(Solution) - Leavenworth Bank and Trust is considering giving Mabry Company a -(2025 Original AI-Free Solution)

Paper Details

Leavenworth Bank and Trust is considering giving Mabry Company a loan. Before doing so, they decide that further discussions with Mabry?s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following.
1. Mabry sold goods costing $55,000 to Ace Company FOB shipping point on December 28. The goods are not expected to reach Ace 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 Mabry FOB destination on December 27 and were still in transit at year-end.
3. Mabry received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Lenny Co. The goods were not included in the physical count.
4. Mabry sold goods costing $51,000 to Flanders of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Mabry?s physical inventory.
5. Mabry received goods costing $37,000 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 $275,000.

Instructions
Determine the correct inventory amount on December 31.