A retail store conducts a physical inventory count and finds \$60,000 worth of inventory. If the beginning inventory was \$50,000, purchases were \$30,000, and purchase returns were \$5,000, what is the cost of goods sold?

• A. \$25,000
• B. \$15,000
• C. \$45,000
• D. \$35,000

Answer: (B)