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

Elliott?s made two errors:

(1) 2022 ending inventory was overstated $3,000, and (2) 2023 ending inventory was understated $5,000.

Instructions

Compute the correct cost of goods sold for each year.

Transcribed Image Text:

2023 2022 Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $ 30,000 150,000 170,000 30,000 $140,000 205,000 35,000 $170,000