Question 14 I'm confused by this

Saved Help Save & Exit Submit 14 Northwest Fur Co. started 2021 with $103,000 of merchandise Inventory on hand. During 2021, $480,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made to.b. shipping point Northwest paid freight charges of $8,800, Merchandise with an invoice amount of $3,500 was returned for credit. Cost of goods sold for the year was $366,000, Northwest uses a perpetual inventory system. 3.33 What is ending inventory assuming Northwest uses the gross method to record purchases? points 8 00-56-57 Multiple Choice O $208,005. O $225,800