Burning Oak, Inc. is a merchandiser of outdoor lawn equipment. During the year, the company purchased $432,500 of inventory from its supplier with terms of 1/10, net 30. During the year, the company returned $12,500 of merchandise and paid $7,500 of freight in for inventory shipped FOB shipping point. Given the company paid within the discount period, the net increase to Burning Oak's merchandise inventory during the year for inventory purchases was $427,500 $423,300 $408,300 $423,175 $423,225