NexGen Technologies is suspected of inflating their revenue figures for the last fiscal year. As a forensic accountant, you are tasked with analyzing their financial statements. The company reported $5,000,000 in revenue, but there are discrepancies in the sales ledger and inventory records. Review the following information:

• Sales ledger indicates $3,800,000 in sales.
• Inventory records show an increase of $700,000.
• There are $200,000 worth of returns not recorded in the revenue.

Requirement: Identify the correct revenue and explain the discrepancies found in the financial statements.

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