Northwest Fur Co. started 2021 with $97,000 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 $7,700. Merchandise with an invoice amount of $4,000 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

$287,700.

$291,700.

$271,260.

$271,320.