Waterway Watch Company reported the following income statement data for a 2-year period. 2022 2021 Sales revenue $260,000 $230,000 Cost of goods sold Beginning inventory 42,000 30,000 Cost of goods purchased 203,000 175,000 Cost of goods available for sale 245,000 205,000 Ending inventory 45,000 42,000 Cost of goods sold 200,000 163,000 $60,000 $67,000 Gross profit Waterway uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $4,000.