5. Were any other years impacted by thr 2017 $225 understatement of ending inventory? Why or Why not?

A. 2018 and 2016 because an error in ending inventory always affects the ending inventory of the previous year and the beginning inventory of the subsequent year.

B. Only 2018, because the 2017 ending inventory error carries over to the 2018 ending inventory.

C. 2018 and 2019, because the 2017 ending inventory error carries over to the 2018 beginning inventory, affecting the 2018 ending inventory which carries over to the 2019 beginning inventory.

D. Both 2017 and 2018 are impacted because the 2017 ending inventory error carries over to the 2018 beginng inventory.

Here is the original schedule of cost of goods sold for Tully Company for the years of 2016 through 2019: Click the icon to view the original schedule of cost of goods sold) 17 ending inventory and all other numbers in the schedule of cost of goods sold for any During the preparation of its 2019 financial statements. Tully Company discovered that its 2017 ending inventory was understated by $225. Make the correction to the 20 years affected and answer these questions Make the correction to the 2017 ending inventory and all other numbers in the schedule of cost o sold for any years affected. Data Table 2019 2018 2017 2016 Beginning inventory 2019 2018 2017 2016 5 400 S 650 $ 300 $ 600 1,450 950 1.400 1.200 Cost of goods avalilable 1,850 S 1,600 5 1700 1,800 Purchases Cost of goods available +Purchases Ending inventory Ending Inventory 250 400 650 300 Cost of goods sold 1. What is the corrected cost of goods sold for 2017? The corrected cost of goods sold for 2017 is $ 2. Did the understatement of ending inventory in 2017 cause the 2017 cost of goods sold to be overstated or understated? The understatement of ending inventory in 2017 caused the 2017 cost of goods sold to be 3. What is the corrected cost of goods sold for 2018 The corrected cost of goods sold for 2018 is 4. Did the understatement of ending inventory in 2017 cause the 2018 cost of goods sold to be overstated or understated? Enter any number in the edit fields and then continue to the next question. 5 1,600 5 1,200$ 1,050 1,500 Cost of goods sold Print Done