End‐of‐period adjustments   LO5 A physical count of inventories at 31 December 2020 revealed that Katoomba Pty Ltd had inventories on hand at that date with a cost of $441 000. Katoomba Pty Ltd uses the periodic method to record inventories transactions. Inventories at 1 January 2020 were $397 000. The annual audit identified that the following items were excluded from this amount. • Merchandise of $61 000 is held by Katoomba Pty Ltd on consignment. The consignor is RomseyLtd. • Merchandise costing $38 000 was shipped by Katoomba Pty Ltd FOB destination to a customer on 31 December 2020. The customer was expected to receive the goods on 6 January 2021. • Merchandise costing $46 000 was shipped by Katoomba Pty Ltd FOB shipping to a customer on 29 December 2020. The customer was scheduled to receive the goods on 2 January 2021. • Merchandise costing $83 000 shipped by a vendor FOB destination on 31 December 2020 was received by Katoomba Pty Ltd on 4 January 2021. • Merchandise costing $51 000 purchased FOB shipping was shipped by the supplier on 31 December 2020 and received by Katoomba Pty Ltd on 5 January 2021. Required 1. Based on the above information, calculate the amount that should appear for inventories on Katoomba Pty Ltd’s statement of financial position at 31 December 2020. 2. Prepare any journal entries necessary to adjust the inventories general ledger account to the amount calculated in requirement 1.