NorthFur Co$.,$ started $2021$ with $$94,000$ of merchandise inventory on hand. During $2021,$ $$400,000$ inventory 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. Freight charges were $$7,500.$ Inventory with an invoice amount of $$5,000$ was returned for credit. Cost of goods sold for the year was $$380,000.$ The company uses a perpetual inventory system.What is ending inventory if we use the gross method to record purchases? $[$Hint: merchandise returned for credit is not eligible for the $1\%$ discount$)$A$)$ $$111,500.$ B$)$ $$112,550.$ C$)$ $$116,500.$ D$)$ $$120,300.$