Pina Colada Farm Store had a beginning merchandise inventory of $ 8500. During the period purchases were $ 34000, purchase returns, $ 1000; and freight in $ 2500. A physical count of inventory at the end of the period revealed that $ 5500 was still on hand Using a periodic inventory system, the cost of goods sold was O $ 38500 O $ 42500 O $41500 $ 43500