Given the Following Items and Costs as of the Balance

Given the following items and costs as of the balance sheet date,determine the value of Light Company's merchandise inventory.
$2,000 goods sold by Light to another company.The goods are in transit and shipping terms are FOB shipping point.
$3,000 goods sold by another company to Light.The goods are in transit and shipping terms are FOB shipping point.
$4,000 owned by Light but in the possession of another company the consignee.
Damaged goods owned by Light which originally cost $5,000,but which now have an $800 net realizable value.

A) $7,000
B) $7,800
C) $9,800
D) $9,000
E) $6,800