Dowell Hardware reported cost of goods sold as follows.

Dowell made two errors: 

1. 2021 ending inventory was overstated by $2,000. 

2. 2022 ending inventory was understated by $5,000. 

Instructions 

Compute the correct cost of goods sold for each year.

Transcribed Image Text:

2022 2021 Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold $ 20,000 $ 30,000 175,000 205,000 37,000 164,000 184,000 30,000 $168,000 $154,000