Northwest Fur Co. started 2021 with $107,000 of merchandise inventory on hand. During 2021, $480,000 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 $7,900. Merchandise with an invoice amount of $4,300 was returned for credit. Cost of goods sold for the year was $365,000. 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

• $581,000.

• $581,086.

• $590,600.

• $588,700.