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XYZ Manufacturing ("XYZ") has a December 31, 2020 year-end. Goods were in transit from a vendor to XYZ on December 31, 2020. The invoice cost was $100,000, and the goods were shipped f.o.b. shipping point on December 29, 2020.
Problem 1: At December 31, 2020, what adjustment(s), if any, should be made to XYZ's books?
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