Grandma Kates Bakery reported sales revenue of $ 52,000 and cost of goods sold of $ 22,000.

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Grandma Kate’s Bakery reported sales revenue of $ 52,000 and cost of goods sold of $ 22,000.

Compute Grandma Kate’s correct gross profit if the company made either of the following independent accounting errors. Show your work.

a. Ending merchandise inventory is overstated by $ 6,000.

b. Ending merchandise inventory is understated by $ 6,000.

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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Jan 16, 2015 09:40 AM

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Grandma Kates Bakery reported sales revenue of $ 52,000 and cost of goods sold of $ 22,000.

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a Correct gross profit is 24000 Calculations As Reported Sales Revenue ...View the full answer

Horngrens Financial and Managerial Accounting

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