From the following information, compute cost of goods sold. $\begin{array}{ll}\text{ Purchase returns }& \$200\\ \text{ Inventory, December }31& 1,500\\ \text{ Freight-in }& 100\\ \text{ Inventory, January }1& 1,800\\ \text{ Purchases }& 5,000\end{array}$

A) $5, 300
B) $5, 200
C) $5, 100
D) $5, 000

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, resulting in a reduction of cost of goods sold for the seller and a refund or credit for the buyer.

Freight-In

The shipping cost for merchandise transported into a company's inventory, typically considered part of the cost of goods sold.