Northwest Fur Co. started 2016 with $94,000 of merchandise inventory on hand. During 2016, $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. Northwest paid freight charges of $7,500. Merchandise with an invoice of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system.

Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?

A.) $492,500

B.) $496,500

C.) $490,500

D.) $492,550

Please show work