Using a T account, determine the ending inventory balance given: Beginning Inventory \$25,000, Purchases \$20,000, Purchase Discounts \$1,000, Purchase Returns \$2,000, and COGS \$15,000.

• A. \$28,000
• B. \$32,000
• C. \$27,000
• D. \$30,000

Answer: (C)