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." $\begin{array} { | l | l | l | } \hline \text { (1) } & \text { tems counted in warehouse, May 31, 2001 } & \$ 70,000 \\\hline \text { (2) } & \text { tems shipped today*. FOB destination, invoice mailed to customer } & 70 \\\hline \text { (3) } & \text { Invoice received for goods ordered. FOB destination, goods not yet received } & 800 \\\hline \text { (4) } & \text { Items shipped today*. FOB shipping point, invoice mailed to customer } & 400 \\\hline\end{array}$ *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