RiCo uses the perpetual method for inventory and records purchases at gross. In 20X4, it has total merchandise purchases of $324,000. It returns 19,000 of the merchandise for full credit and receives $7,000 in allowances from its vendors for defective merchandise and takes cash discount of $1,000. The net cost of RiCo's 20X4 merchandise purchases is... a. 297,000 b. 305,000 c.324,000 d. 298,000