Dowell Hardware reported cost of goods sold as follows.

Dowell made two errors:
1. 2016 ending inventory was overstated by $2,000.
2. 2017 ending inventory was understated by $5,000.
Instructions
Compute the correct cost of goods sold for each year.

Transcribed Image Text:

2017 2016 Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold $30,000 20,000 164,000 184,000 30,000 $168,000 $154,000 1 175,000 205,000 37,000