What is the Merchandise inventory/Balance inventory in the following case?Given the following items and costs as of the balance sheet date,...

According to information
provided:

• $2,000 goods sold by Light to another
  company. The goods are in transit and shipping terms are FOB shipping point. And $3,000
  goods sold by another company to Light. The goods are in transit and shipping terms are
  FOB shipping point.
  

In FOB shipping
point the ownership of the goods is transferred to the buyer only at the point of
destination. On transit, the ownership continues to be with the
seller.

The goods that are sold to Light are not yet owned
by light while the goods that Light has sold continue to remain under the ownership of
Light.

• $4,000 owned by Light but in the
  possession of another company the
  consignee.

These goods are with the consignee
but the ownership remains with Light.

• Damaged
  goods owned by Light which originally cost $5,000, but which now have an $800 net
  realizable value.

These are goods with Light
and have a value of $800.

From the items above we see that
the cost of goods of which Light is still the owner is $2000 + $4000 + $800 =
$6800.

The required merchandise/ balance
inventory is option E or $6800.