Bienvenu Enterprises reported cost of goods sold for 2022 of $1,400,000 and retained earnings of $5,200,000 at

Question:

Bienvenu Enterprises reported cost of goods sold for 2022 of $1,400,000 and retained earnings of $5,200,000 at December 31, 2022. Bienvenu later discovered that its ending inventories at December 31, 2021 and 2022, were overstated by $110,000 and $35,000, respectively. Determine the corrected amounts for 2022 cost of goods sold and December 31, 2022, retained earnings.