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

Elliott's made two errors: (1) 2021 ending inventory was overstated $3,000, and (2) 2022 ending inventory was understated $5,000.

Instructions
Compute the correct cost of goods sold for each year.

Transcribed Image Text:

Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 2022 $ 30,000 175,000 205,000 35,000 $170,000 2021 $20,000 150,000 170,000 30,000 $140,000