Bradley Company reported the following net income amounts: 2017, $246,000; 2018, $150,000: 2019, $120,000. In 2020, the company discovered errors that had been made in computing the ending inventories for 2017 and 2018, as follows: 2017Ending inventory understated by $18,000 2018Ending inventory understated by $21,000 Compute the correct net incomes for 2017, 2018, and 2019.

Bradley Company reported the following net income amounts: 2017, $246,000; 2018, $150,000: 2019, $120,000. In 2020, the company discovered errors that had been made in computing the ending inventories for 2017 and 2018, as follows: 2017Ending inventory understated by $18,000 2018Ending inventory understated by $21,000 Compute the correct net incomes for 2017, 2018, and 2019.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
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