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Northwest Fur Co. started 2021 with $95,000 of merchandise inventory on hand. During 2021, $550,000 in merchandise was purchased on account with credit terms
Northwest Fur Co. started 2021 with $95,000 of merchandise inventory on hand. During 2021, $550,000 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 $8,800. Merchandise with an invoice amount of $4,100 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Multiple Choice $258,323. $278,800. $258,263. $274,700.
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