Listed Below Are Some Items of Inventory for a Company

Multiple Choice

Listed below are some items of inventory for a company at May 31,2001.A substantial portion of the merchandise is stored in a separate warehouse and the company transfers damaged goods to a special inventory account.The company policy is "satisfied customers." $\begin{array} {| l|l| l| } \hline(1) & \text { Items counted in warehouse, May 31, 2001}&\$70,000\\\hline(2) & \text { Items shipped today*, \( \mathrm{FOB} \) destination, invoice maled to customer}&70\\\hline(3) & \text {Invoice received for goods ordered, FOB destination, goods not yet received. }&800\\\hline(4) & \text { Items shipped today*. FOB shipping point, invoice mailed to customer}&400\\\hline\end{array}$
*Shipped after the count in (1) was made. The correct inventory to be shown on the May 31,2001 balance sheet would be:

A) $69,600
B) $70,000
C) $70,070
D) $70,470