A company starts with an inventory of \$50,000, makes purchases of \$30,000, receives purchase discounts of \$1,000, returns \$2,000 worth of goods, and has COGS of \$25,000. What is the ending inventory balance?

• A. \$52,000
• B. \$56,000
• C. \$50,000
• D. \$54,000

Answer: (A)