Aunt Betty Bakery reported net sales revenue of $53,000 and cost of goods sold of $31,000....

  

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Aunt Betty Bakery reported net sales revenue of $53,000 and cost of goods sold of $31,000. Compute Aunt Betty's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $8,000. b. Ending merchandise inventory is understated by $8,000. Net sales revenue Cost of goods sold Gross profit 60 As Reported- Incorrect 53,000 $ 31,000 Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: (b) Understated by $8,000 (a) Overstated by $8,000 53,000 $ 53,000 Aunt Betty Bakery reported net sales revenue of $53,000 and cost of goods sold of $31,000. Compute Aunt Betty's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $8,000. b. Ending merchandise inventory is understated by $8,000. Net sales revenue Cost of goods sold Gross profit 60 As Reported- Incorrect 53,000 $ 31,000 Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: (b) Understated by $8,000 (a) Overstated by $8,000 53,000 $ 53,000

Answer rating: 100% (QA)

Solution As reported a Overstated b Understated Particulars Incorrect by 8000 ... View the full answer