Cost of Goods Sold Beginning Inventory $36,000 Add: Purchases $32,000 Less: Purchase Discounts $1,800 Purchase Returns and Allowances $1,200 Net Purchases $29,000 Freight-in $2,500 Cost of Goods Purchased $31,500 Goods Available for Sale $67,500 Less: Ending Inventory $14,000 Total Cost of Goods Sold