2019 2020 Sales revenue Cost of goods sold Beginning inventory HK$2,170,000 HK$2,510,000 348,000 444,500 Cost of goods purchased 1,750,000 2,175,000 Cost of goods available for sale 2,098,000 2,619,500 Ending inventory 444,500 527,000 Cost of goods sold 1,653,500 2,092,500 Gross profit HK$516,500 HK$417,500 Bonita uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was understated HK$60,000.