Elliott's Hardware reported cost of goods sold as follows.

Elliott's made two errors:

(1) 2016 ending inventory was overstated $3,000,

(2) 2017 ending inventory was understated $5,000.

Instructions

Compute the correct cost of goods sold for each year.

Transcribed Image Text:

2016 20,000 30,000 150,000 170,000 30,000 2017 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 175,000 205,000 35,000 140,000 $170,000