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 Faltron Company's merchandise inventory. - $1,000 goods sold by Faltron to another company.The goods are in transit and shipping terms are FOB destination.
- $2,000 goods sold by another company to Faltron.The goods are in transit and shipping terms are FOB destination.
- $3,000 owned by Faltron but in the possession of another company,the consignee.
- Damaged goods owned by Faltron that originally cost $4,000 but now have a $500 net realizable value.

A) $10,000
B) $6,500
C) $5,500
D) $5,000
E) $4,500