NF-Co. started 2021 with $94,000 of merchandise inventory on hand. During 2021, $400,000 in merchandise 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. NF-Co. paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. NF-Co. uses a perpetual inventory system.

What is ending inventory assuming NF-Co. uses the gross method to record purchases?

		$116,500.
		$112,550.
		$120,300.
		$112,490.