Errors

Inventory at January $1,2019,$ was understated by $$6,000.$

Inventory at December $31,2019,$ was overstated by $$5,000.$ company's gross profit on sales is $50\%.$ Net income reported on the $2019$ income statement $($before reflecting any adjustments for the above items$)$ is $$20,000.$

Required:

What is the correct net income for $2019?$

BURNETT CO$.$

Calculation of correct net income

For the year ended December $31,2019$

Net income before adjustments $$

Adjustments

Overstatement of ending inventory $$

Overstatement of sales revenue $$

Net income after adjustments $$

$