Question
While performing a detailed review of its financial records, Doors Unlimited noted the following ending inventory errors: 2020 2021 2022 Understated $55,000 Overstated $14,300 No
While performing a detailed review of its financial records, Doors Unlimited noted the following ending inventory errors:
| 2020 | 2021 | 2022 |
| Understated $55,000 | Overstated $14,300 | No errors |
| 2020 | 2021 | 2022 | |||||
| Ending inventory as reported | $ | 360,000 | $ | 435,000 | $ | 407,000 | |
| Cost of goods sold as reported | 1,330,000 | 1,780,000 | 2,130,000 | ||||
| Profit as reported | 355,000 | 531,000 | 667,000 | ||||
Required: Calculate the corrected ending inventory and cost of goods sold amounts for each year by completing the following schedule:
While performing a detailed review of its financial records, Doors Unlimited noted the following ending inventory errors:
| 2020 | 2021 | 2022 |
| Understated $55,000 | Overstated $14,300 | No errors |
| 2020 | 2021 | 2022 | |||||
| Ending inventory as reported | $ | 360,000 | $ | 435,000 | $ | 407,000 | |
| Cost of goods sold as reported | 1,330,000 | 1,780,000 | 2,130,000 | ||||
| Profit as reported | 355,000 | 531,000 | 667,000 | ||||
Required: Calculate the corrected ending inventory and cost of goods sold amounts for each year by completing the following schedule:
2020,2021 and 2022
Corrected ending inventory
Corrected cost of goods sold
Corrected profit
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Development Economics
Authors: Debraj Ray
1st Edition
0691017069, 9780691017068
