Foxtrot Co. started 2021 with $101,000 of merchandise inventory on hand. During 2021, $460,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Foxtrot paid freight charges of $7,600. Merchandise with an invoice amount of $4,400 was returned for credit. Cost of goods sold for the year was $376,000. Foxtrot uses a perpetual inventory system. What is ending inventory assuming Foxtrot uses the gross method to record purchases?

Multiple Choice

• $188,200.

• $192,600.

• $179,088.

• $179,028.