3) (INVENTORY CUTOFF ERRORS) In an annual audit at December 31,1994, you find the following transactions near the closing dare. 1. Merchandise receivel on January 6, 1995 costing $510 was entered in the purchase journal on January 7, 1995. The invoice showed the shipment was made fo.b. supplicer's warehouse on December 31, 1994. Because it was not on hand at December 31 , it was not included in inventory. 2. A special machine, made tu order for a customer, was finished and, at the customer's request, was held in the back part of the shipping roon on December 31, 1994 to he delivered within the next week. The customer was billed on December 31 as the customer agreed to bear tesponsilility for the machine whale it was being held. 3. Merchandise conting 52,300 was receivel on January 3, 1995 and the relared purchase invoice recorded January 5. The invice thowed the shipment was made on December 29,1994 f.o.b. destination. 4. Merchandise costing $720 was recened on December 28,1919 and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked on consignment. 5. A packing case containing a product costing S1,100 was standing in the shipping roott when the plysial inventory was taken. It was not included in the inventory because it was marked "Holl for shipping intructiums." Ynur invesagation rerealed that the cestomer's ordet was datal December 18, 1994, but that the case kas shipped and the customer billed on Janaary 10, 1995. The proluct was a stnck item of your chent. Instructions Assuming that each of the amounes is material, state whecher the merchandise should be included in the client's inventory and give the reason for your decision on each item