Question: hi, please i need help with this question for a and b TIA Hudson River Bakery reported net sales revenue of $45,000 and cost of
Hudson River Bakery reported net sales revenue of $45,000 and cost of goods sold of $27,000. Compute Hudson River's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $7,000. b. Ending merchandise inventory is understated by $7,000. Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: As Reported- (a) Overstated by (b) Understated by Incorrect $7,000 $7,000 Net sales revenue 45,000 45,000 $ $ 45,000 $ 27,000 Cost of goods sold Gross profit
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