Gordon company's inventory at june 2011 was $75000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following:
--Include in the physical count were goods billed to a customer FOB shipping point on June 30,2011. These goods had a cost of $1,500 and were picked up by the carrier on July 2,2011.
-- goods shipped FOB destination on June 28,2011, from a vendor to gordon were receive on july 3,2011. The invoice cost was $2,500.
What amount should gordon report as inventory on its June 30,2011, balance sheet?
a. $73,500
b. $74,000
c. $75,000
d. $76,500