The Vintage Car Parts Company of Elko Nevada was closed on January 1^st for New Year’s Day and stayed closed on January 2^nd in order to take a complete physical inventory. At the conclusion of the physical count on January 2^nd, the total physical inventory counted was $423,700.

Because the company was not quite sure about a number of inventory-related items, they have provided the following list for your review and recommendation on how to handle the items noted to be sure they have a correct physical inventory as of December 31^st.

1. During the physical inventory on January 2^nd, a freight truck arrived with a shipment of car parts that had been ordered on December 21st. The freight document showed the order left the supplier’s warehouse on December 22^nd and was shipped FOB Destination with a guaranteed arrival date of December 28^th. The shipment was delayed due to a heavy sierra snowstorm; however, because it was originally guaranteed to arrive on December 28^th, the parts were counted and included in physical inventory; the total cost of the car parts was $21,945.

2. Five days later, on January 7^th a large shipment of parts totaling $17,850 arrived. The shipping documents indicated the order left the supplier’s warehouse FOB shipping point on December 31^st. This order was Not counted since it had arrived 7 days after December 31^st.

3. On December 27^th Vintage Car Parts had shipped a FEDX 2 day rush order to be delivered on December 29^th to a Corvette restoration shop in Concord California. The cost of the inventory was $5,900 and the invoice price to the customer was $9,875. The rush shipment was sent to FOB destination, however, due to the sierra snow storm, it actually arrived at the restoration shop in Concord on January 2^nd. Vintage Car Parts did NOT include the shipment in their physical inventory since it was a FEDX 2 day rush shipment to the customer with a planned delivery date of December 29^th.

4. On December 23^rd Vintage Car Parts received a shipment on consignment totaling $9,575 from the Classic General Motors Parts Company. On December 27^th Vintage Car Parts sold $2,000 of the consigned inventory to a customer. The sale was shipped FOB destination and the customer received the shipment on December

30^th. The remaining balance of the inventory totaling $7,575 ($9,575 - $2,000) was counted and included in the physical inventory of Vintage Car Parts.

Prepare a schedule detailing the correct amount of inventory Vintage Car Parts should report on their December 31^st year-end Balance Sheet.