Jackson Company took a physical inventory at the end of Year One and determined that the inventory to be reported on the balance sheet should be $400,000. However, the following inventory was not included in this count. The first group of goods was shipped to a customer on December 29, Year One. This merchandise cost $11,000 but was sold for $15,000. It was sold FOB destination and shipping takes 5 days. The second group of goods was bought from a vendor and received on January 2, Year Two. The merchandise cost $8,000 but will eventually be sold for $16,000. It was bought FOB shipping point and shipping took 5 days. The third group of goods was bought from a vendor and received on January 4, Year Two. The merchandise cost $5,000 but will be sold for $7,000. It was bought FOB destination and shipping took 5 days. What should Jackson have reported for its ending inventory on December 31, Year One ?
