Bonita Company took a physical inventory on December 31 and determined that goods costing $198,200 were on hand. Not included in the physical count were $26,200 of goods-in-transit purchased FOB shipping point from Pelzer Corporation, and $23,410 of goods-in-transit sold to Alvarez Company for $28,450, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Bonita report as its December 31 inventory?
December 31 inventory
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