Salt Lake Pool Supplies’ merchandise inventory data for the year ended December 31, 2026, follow: 

Requirements 

1. Assume that the ending merchandise inventory was accidentally overstated by $2,400. What are the correct amounts for cost of goods sold and gross profit for year ended December 31, 2026? 

2. How would the inventory error affect Salt Lake Pool Supplies’ cost of goods sold and gross profit for the year ended December 31, 2027, if the error is not corrected in 2026?

Transcribed Image Text:

SALT LAKE POOL SUPPLIES Income Statement (Partial) Year Ended December 31, 2026 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit $ 4,200 26,600 30,800 6,200 $ 60,000 24,600 $ 35,400