At the beginning of Year 2, Donald Company had $5,000 of inventory on hand. During the accounting period Donald purchased inventory costing $25,000 and sold inventory for $32,000. Also, during the period the company had purchase returns of $500, purchase discounts of $100, transportation-in of $800, and transportation out of $1,200. Operating expenses were $13,000 during the accounting period. A physical count of inventory on December 31, Year 2 revealed $4,000 of inventory on hand. Based on this information, determine the cost of goods sold.