Grandma Kate Bakery reported sales revenue of $52,000 and cost of goods sold of $22,000. Requirement 1.

Question:

Grandma Kate Bakery reported sales revenue of $52,000 and cost of goods sold of $22,000.
Requirement
1. Compute Grandma Kate’s correct gross profit if the company made either of the following independent accounting errors. Show your work.
a. is overstated by $6,000.
b. is understated by $6,000.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...