Presented below is a list of items that may or may not be reported as inventory in a company's December 31 balance sheet. Indicate which of these items would typically be reported as inventory in the financial statements. If an item should not be reported as inventory, indicate how it should be reported in the financial statements. Item inFinancial StatementFinancial Statement1.Goods sold on an installment basis (bad debts can be reasonably estimated).Not reportedNot reported2.Goods out on consignment at another company's store.InventoryBalance sheet3.Goods purchased f.o.b. shipping point that are in transit at December 31.InventoryBalance sheet4.Goods purchased f.o.b. destination that are in transit at December 31.Not reportedNot reported5.Goods sold to another company, for which our company has
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