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

Hamid's made two errors: (1) 2019 ending inventory was overstated $3,000, and (2) 2020 ending inventory was understated $6,000.

Instructions

Compute the correct cost of goods sold for each year.

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2019 2020 $ 20,000 $ 30,000 Beginning inventory Cost of goods purchased 150,000 175.000 Cost of goods available for sale 170,000 205,000 Ending inventory 30,000 35,000 Cost of goods sold $140,000 $170,000