Northwest Fur Co. started 2021 with $106,000 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. Northwest paid freight charges of $8,600. Merchandise with an invoice amount of $3,600 was returned for credit. Cost of goods sold for the year was $363,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $208,000.

• $198,872.

• $211,600.

• $198,812.