Question
The following information is taken from the records of Perfect Fit Fashions Inc. for 2019 and 2020: 2019 2020 Beginning inventory $29,000 $41,000 Ending inventory
The following information is taken from the records of Perfect Fit Fashions Inc. for 2019 and 2020:
| 2019 | 2020 | |
|---|---|---|
| Beginning inventory | $29,000 | $41,000 |
| Ending inventory | $41,000 | $31,000 |
| Cost of goods sold | $52,000 | $48,000 |
| Gross profit | $25,000 | $29,000 |
The company performed an inventory count at the end of 2019 and 2020 and discovered that the ending inventory amounts listed above were incorrect as follows:
| Error in Ending Inventory | $ Amount | |
|---|---|---|
| 2019 | Overstated | $13400 |
| 2020 | Understated | $7200 |
Required:
What is the corrected net profit for 2019?
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Business Accounting
Authors: Frank Wood, Alan Sangster
7th Edition
0273619829, 9780273619826
