Police say a Main Line man was murdered by his childhood friend after an argument over money.

The body of 21-year-old Drew Ferguson was found stuffed inside a blue sleeping bag underneath a pile of trash in the upstairs room of his grandparents' home along the 200 block of Miner Street in Malvern, Pa. Ferguson had been missing since the weekend before the gruesome discovery was made.

Investigators say Ferguson's longtime friend Merritt Dudas, 24, robbed Ferguson and then shot him in the head with a .380 caliber handgun, killing him. According to police, the childhood friends had gotten into a heated argument last week over money.

After executing search warrants and gathering evidence, police arrested Dudas at a home in Collegeville where he was staying with his girlfriend and her parents. They recovered the gun, which they say was stolen from the father of Dudas' girlfriend, as well as Ferguson's Honda Civic, keys and wallet. Dudas was charged with homicide and held without bail.

Dudas said nothing after being arraigned Tuesday night.

"I'm just confused," said Michael Cheshire, a friend of both the victim and alleged murderer. "I don't understand how this could happen in Malvern. It's a nice town. I don't know who would do this to Drew."

A friend told NBC10's Daralene Jones that Ferguson was a "good guy who loved cars."