Here is the original schedule of cost of goods sold for Talladega Company for the years of 2019 through 2022: 

During the preparation of its 2022 financial statements, Talladega Company discovered that its 2020 ending inventory was understated by $400. Make the correction to the 2020 ending inventory and all other numbers in the schedule of cost of goods sold for any years affected. 

1. What is the corrected cost of goods sold for 2020?

2. Did the understatement of ending inventory in 2020 cause the 2020 cost of goods sold to be overstated or understated?

3. What is the corrected cost of goods sold for 2021? 

4. Did the understatement of ending inventory in 2020 cause the 2021 cost of goods sold to be overstated or understated?

5. Were any other years impacted by the 2020 $400 understatement of ending inventory? Why or why not?

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1 2 A1 Beginning inventory 3+ Purchases A 4 = Cost of goods available 5 - Ending inventory 6 = Cost of goods sold 7 B 2022 2021 750 $ 600 950 1,150 $ 1,700 $ 1,750 300 750 $1,400 $ 1.000 $ D 2020 $ 2019 650 $ 700 900 $ 1,600 650 $ 950 1,250 $ 1,900 600 $ 1,300