Problem $4-2.$

On December $31,2018,$ Jewels Inc. took an inventory impairment of $$20,801.$ They included the impairment in the Cost of Goods Sold, which was $$2,852,714.$

Suppose they sell this inventory in $2019.$ How will this impairment impact the COGS in $2019?$

If they did NOT impair the inventory, what would be the COGS in $2018?$ Would the ending balance of inventory be higher, lower, or the same in $2018?$