Brown Industries has a December 31st year-end. On January 1, 20x2, Brown had $108,000 of merchandise inventory on hand. During 20x2, Brown purchased $500,000 of inventory on account with credit terms of 2/15, n/45. Brown took all available purchase discounts. Purchases were all made f.o.b. shipping point and Brown paid freight charges of $9,300 on inventory purchased in 20x2. Merchandise with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the year was $364,000. Brown uses a perpetual inventory system. (Hint: it will be helpful to remember that purchase discounts are not allowed on returned merchandise.) What is Brown's ending inventory on December 31, 20x2 assuming Brown uses the gross method to record purchases?