Problem
The Merchandise Inventory account had a balance of $20,000 at the start of fiscal year X2. Purchases of goods made during fiscal year X2 amounted to $50,000. Finally, a physical inventory count by the accountant at the end of period X2 reveals an inventory cost of $25,000, Note that all purchases during the period were accounted for in the Purchase of Goods (GSP) account, because the company uses a periodic inventory system. Based on this information, indicate the amount that should be presented in the income statement as cost of goods sold for the period X2?