Rulix Watch Company reported the following income statement data for a 2-year period. 2016 2017 Sales revenue $217,000 $259,500 Cost of goods sold 34,500 45,000 Beginning inventory Cost of goods purchased 179,000 219,000 Cost of goods available for sale 213,500 264,000 Ending inventory 45,000 53,000 168,500 211,000 Cost of goods sold $48,500 $48,500 Gross profit Rulix uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct. However, the ending inventory at December 31, 2016, was overstated $5,000