3 of 5 < > View Policies Current Attempt in Progress Nash Jewelry reported the following income statement data for a 2-year period. 2019 2020 Sales revenue HK$2,130,000 HK$2,540,000 Cost of goods sold Beginning inventory 344,000 441,000 Cost of goods purchased 1,730,000 2,161,000 Cost of goods available for sale 2,074,000 2,602,000 Ending inventory 441,000 538,000 Cost of goods sold 1,633,000 2,064,000 Gross profit HK$497,000 HK$476,000 -/1 E Nash 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$70,000. Nash 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$70,000. Prepare correct income statement data for the 2 years. Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit HK$ 2019 HK$ HK$ HK$ 2020 (b) What is the cumulative effect of the inventory error on total gross profit for the 2 years? The cumulative effect on total gross profit for the two years is HK$