Northwest Fur Co. started 2021 with $108,000 of merchandise inventory on hand. During 2021, $560,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $365,000. Northwest uses a perpetual inventory system.

Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?

Multiple Choice

$664,500.

$667,837.

$673,400.

$667,800.

Answer rating: 100% (QA)

Answer 667837 Working Notes Particulars Amount A... View the full answer