Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ultim Corp. is $280,000 on December 31 based on a physical inventory count. Th following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $700 of merchandise inventory set aside for expected shipmen to a customer. b. On December 31, the physical inventory excluded $2,800 of merchandise inventory out on consignment in a customer's showroom. c. On December 31, the physical inventory excluded $2,240 of merchandise held on consignment. d. In transit merchandise of $2,100 was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. T merchandise was turned over to a common carrier on December 28 and is delivered to the customer on December 31. e. Ultim Corp. ordered $2,240 of merchandise on December 26. The merchandise was shipped to Ultim Corp. f.o.b. shipping point on December 30 and was expected to arrive January 2 of next year. The merchandise was not included in the physical inventory count. f. A return to a vendor of merchandise for $2,800 was in transit on December 31 and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point December 30. Required Review items a through f and determine the adjusted inventory balance for year - end December 31.