Provence Bakery reported sales revenue of $148,000 and cost of goods sold of $91,000. Compute Provence Bakery's

Question:

Provence Bakery reported sales revenue of $148,000 and cost of goods sold of $91,000. Compute Provence Bakery's correct gross margin if the company made each of the following independent accounting errors. Show your work.

1. Ending inventory is understated by $3,000.

2. Beginning inventory is understated by $3,000 and Ending inventory is overstated by $3,000.

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 =...