Northwest Fur Co. started 2018 with $95,000 of merchandise inventory on hand. During 2018, $590,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,500. Merchandise with an invoice amount of $3,200 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system.

Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?

Multiple Choice

• $672,696.
• $694,200.
• $690,300.
• $672,600.