Sheridan Watch Company reported the following income statement data for a 2-year period. Sheridan uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

Question 1 Sheridan Watch Company reported the following income statement data for 2019 2020 $270,000 $200,000 Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 28,000 172,000 200,000 40,000 160,000 $40,000 40,000 204,000 244,000 50,000 194,000 $76,000 Sheridan uses a periodic inventory system. The inventories at January 1, 20 Prepare correct income statement data for the 2 years. 2019 2020 Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $40,000 $76,000 Gross profit Sheridan uses a periodic inventory system. The inventories at January 1, 2019, and Dec Prepare correct income statement data for the 2 years. 2019 2020 Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit $ What is the cumulative effect of the inventory error on total gross profit for the 2 years? Cumulative effect of the inventory error $ IMG_9105.jpg IMG_9104.jpg