Dowell Hardware reported cost of goods sold as follows.

Dowell made two errors:

1. 2024 ending inventory was overstated by \(\$ 2,000\).

2. 2025 ending inventory was understated by \(\$ 5,000\).

Instructions

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 Less: Ending inventory Cost of goods sold 2025 $ 30,000 175,000 205,000 37,000 $168,000 2024 $ 20,000 164,000 184,000 30,000 $154,000