California Pool Supplies merchandise inventory data for the year ended December 31, 2015, follow: Requirements 1. Assume
Question:
California Pool Supplies’ merchandise inventory data for the year ended December 31, 2015, follow:
Requirements
1. Assume that the ending merchandise inventory was accidentally overstated by $ 2,400. What are the correct amounts for cost of goods sold and gross profit?
2. How would the inventory error affect California Pool Supplies’ cost of goods sold and gross profit for the year ended December 31, 2016, if the error is not corrected in2015?
Transcribed Image Text:
Sales Revenue Cost of Goods Sold: $60,000 Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 4,200 26,600 30,800 6,200 24,600 S 35.400 Gross Proft
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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