P Flag question Errors in Inventory Counts The following information was taken from the records of Taylor Enterprises: Year 2 Year 1 Beginning inventory $105,000 $87,500 Cost of goods purchased 735,000 700,000 Cost of goods available for sale 840,000 787,500 Ending inventory 96,250 105,000 Cost of goods sold $743,750 $682,500 The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $17,500. 2. Year 2 ending inventory was overstated by $8,750. Compute the correct cost of goods sold for both years. Year 2 Year 1 Cost of goods sold $ x$