What is ending inventory assuming northwest


Northwest Fur Co. started 2011 with $100,000 of merchandise inventory on hand. During 2011, $460,000 in merchandise was purchased on account with credit terms of 4/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,600. Merchandise with an invoice amount of $3,100 was returned for credit. Cost of goods sold for the year was $369,000. Northwest uses a perpetual inventory system.

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

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