Southeast Trading Co. had beginning merchandise inventory of $84,000. During Year 1, $400,000 in merchandise was purchased on account with credit terms of 2/10,n/30. All discounts were taken. Purchases were all made FOB shipping point. Southeast paid freight charges of $7,500. Merchandise inventory with a gross invoice amount of $5,000 was returned to the manufacturer Cost of goods sold for the year was $380,000. Southeast uses a perpetual inventory system. What is ending merchandise inventory assuming Southeast uses the gross method to record purchases? 3. $96,000 b. $98,500 C. $91,000 d. $98,800 e. $91,100