Sheridan Phone Inc. took a physical inventory at the end of the year and determined that $780000 of goods were on hand. In addition, the following items were not considered when taking the final physical count. Sheridan Phone noted that $43900 of goods purchased FOB destination and in transit at year-end arrived two days after year-end. Additionally, because of high rates of return on some products, Sheridan Phone has established an estimate of items that will be returned of $28500, What amount should Sheridan Phone report in their year-end balance sheet for the inventory account?

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