A periodic-system company reports beginning inventory $10,000, purchases $30,000, freight-in $5,000, purchases discounts $1,000, purchases returns $2,000, and ending inventory $8,000. What is cost of sales for the year?

1. Goods available for sale = beginning inventory + purchases + freight-in - purchases discounts - purchases returns. 2. = $10{,}000 + $30{,}000 + $5{,}000 - $1{,}000 - $2{,}000 = $42{,}000. 3. Cost of sales = goods available for sale - ending inventory = $42{,}000 - $8{,}000 = $34{,}000. 4. $42,000 is goods available before deducting ending inventory; $32,000 omits freight-in; $40,000 ignores the discount and return adjustments. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §3.5 "Basic Merchandising Transactions (Periodic Inventory System)", p.107_