Trump Luggage Sales uses a periodic inventory system. The inventory data for the year ended December 31,

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Trump Luggage Sales uses a periodic inventory system. The inventory data for the year ended December 31, 2022, follow:

Assume that the ending inventory was accidentally overstated by $4,000. What are the correct amounts of cost of goods sold and gross margin after correcting this error?

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Horngrens Accounting Volume 1

ISBN: 9780135359709

11th Canadian Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood

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Question Posted: May 14, 2023 05:23 AM

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Trump Luggage Sales uses a periodic inventory system. The inventory data for the year ended December 31,

Question:

Sales revenue Cost of goods sold Beginning inventory Net purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin $150,000 22,000 80,000 102,000 24,000 78,000 $ 72,000

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Horngrens Accounting Volume 1

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