Northwest Fur Company started $2024$ with $$109,000$ of inventory on hand. During $2024,$ $$530,000$ in inventory was purchased on account with credit terms of $215/$

$,$ n$45/$

$.$ All discounts were taken. Purchases were all made f$.$o$.$b$.$ shipping point. Northwest paid freight charges of $$8,400.$ Inventory with an invoice amount of $$4,700$ was returned for credit. Cost of goods sold for the year was $$368,000.$ Northwest uses a perpetual inventory system.

What is ending inventory assuming Northwest uses the gross method to record purchases?

$1)264,134$

$2)279,400$

$3)274,700$

$4)264,194$