Northwest Fur Co. started 2021 with $100,000 of merchandise inventory on hand. During 2021, $450,000 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. Northwest paid freight charges of $7,600. Merchandise with an invoice amount of $3,900 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $169,778.

• $169,718.

• $178,700.

• $182,600.