The following events involving a recent purchase of merchandise were recorded by Thomson Company:

Purchased goods on credit for $125,000, terms 1/15, n/45.

Returned $11,000 of the shipment for credit on account.

Paid transportation in cost of $2,000.

Paid the invoice within the discount period. As a result of these events, the companys merchandise inventory:

Select one:

A. Increased by $127,000.

B. Increased by $114,860.

C. Increased by $125,000.

D. Increased by $112,860.