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Northwest Fur Co. started 2021 with $109,000 of merchandise inventory on hand. During 2021, $420,000 in merchandise was purchased on account with credit terms of
Northwest Fur Co. started 2021 with $109,000 of merchandise inventory on hand. During 2021, $420,000 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 $9,000. Merchandise with an invoice amount of $3,000 was returned for credit. Cost of goods sold for the year was $378,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?
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