Cost of Goods Sold and the Periodic System Kanzu Company uses the periodic inventory system. Kanzu started the period with $20,000 in inventory. The Company purchased an additional $25,000 of merchandise, and returned $2,000 for a full credit. A physical count of inventory at the end of the period revealed that there was an ending inventory balance of $16,000. What was Kanzus cost of goods sold during the period?