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.

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