Northwest Fur Co. started 2021 with $103,000 of merchandise inventory on hand. During 2021, $500,000 in merchandise was purchased on account with credit terms of 1/15, 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 $4,000 was returned for credit. Cost of goods sold for the year was $365,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $236,580.

• $236,640.

• $241,600.

• $245,600.