At the beginning of the year, Point Claire Shipping Ltd., a company that has a perpetual inventory system, had $25,000 of merchandise inventory. During the year, inventory costing $100,000 was purchased. Of this, $12,000 was returned to the supplier and a 5% discount was taken on the remainder. Freight costs incurred by the company for merchandise purchases amounted to $2,400. The cost of goods sold during the year was $93,000. Determine the balance in the Merchandise Inventory account at the end of the year.