Cinnamon Buns Co. (CBC) started 2018 with $52,900 of merchandise on hand. During 2018, $292,000 in merchandise was purchased on account with credit terms of 1/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,600. Merchandise with an invoice amount of $3,500 was returned for credit. Cost of goods sold for the year was $299,000. CBC uses a perpetual inventory system.

Assuming CBC uses the gross method to record purchases, ending inventory would be:

Multiple Choice

• $39,515.

• $49,115.

• $52,000.