MC Qu. 93 Poppy Co. uses a periodic inventory... Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,900, and its ending inventory on December 31 was understated by $15,700. In addition, a purchase of merchandise costing $21,200 was incorrectly recorded as a $2,120 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was: Multiple Cholce Overstated by $34,280. Understated by $49,980