Northwest Fur Co. started 2021 with $112,000 of merchandise inventory on hand. During 2021, $490,000 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 $7,900. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $377,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $228,900.

• $214,260.

• $232,900.

• $214,320.

b.) What is the cost of goods available for sale using the gross method?