Errors in Inventory Counts The following information was taken from the records of Hawk Enterprises: Year 1 Year 2 Beginning Inventory $75,000 $55,000 Cost of goods purchased 500,000 540,000 Cost of goods available for sale 575,000 595,000 55,000 85,000 $520,000 $510,000 Ending inventory Cost of goods sold The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was overstated by $28,000 2. Year 2 ending inventory was understated by $17,000 Cost of Goods Sold $ Year 1 $ Year 2

Errors in Inventory Counts The following information was taken from the records of Hawk Enterprises: The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was overstated by $28,000 2. Year 2 ending inventory was understated by $17,000