Northwest Fur Co. started 2021 with $103,000 of merchandise inventory on hand. During 2021, $530,000 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 $9,400. Merchandise with an invoice amount of $3,600 was returned for credit. Cost of goods sold for the year was $372,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $270,400.

• $266,800.

• $251,008.

• $250,948.