Seles Hardware reported cost of goods sold as follows:

Seles made two errors:
1. 2001 ending inventory was overstated by $4,000.
2. 2002 ending inventory was understated by $3,000.
Instructions e Compute the correct cost of goods sold for each year.

Transcribed Image Text:

Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 2001 $ 20,000 2002 $ 30,000 150,000 175,000 170,000 205,000 30,000 35,000 $140,000 $170,000