Riderco Pool Supplies' merchandise inventory data for the year ended December 31, 2025, follow: EEE (Click the icon to view the inventory data.) Read the requirements. Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2025 would be What is the correct amount of gross profit? Gross profit in 2025 would be Requirement 2. How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Cost of goods sold for 2026 would be by How would the inventory error affect Riderco Pool Supplies' gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Gross profit for 2026 would be by Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? 2. How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Print - X Done Data table Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Print Done $ 5,500 37,600 43,100 4,100 $ - X 71,000 39,000 32,000
Riderco Pool Supplies' merchandise inventory data for the year ended December 31, 2025, follow: EEE (Click the icon to view the inventory data.) Read the requirements. Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2025 would be What is the correct amount of gross profit? Gross profit in 2025 would be Requirement 2. How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Cost of goods sold for 2026 would be by How would the inventory error affect Riderco Pool Supplies' gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Gross profit for 2026 would be by Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? 2. How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025? Print - X Done Data table Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Print Done $ 5,500 37,600 43,100 4,100 $ - X 71,000 39,000 32,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![### Riderco Pool Supplies: Inventory Data for the Year Ended December 31, 2025
#### Requirements
**Requirement 1:**
Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for the cost of goods sold and gross profit?
- **Cost of goods sold in 2025 would be:** [Input box]
- **What is the correct amount of gross profit?**
- **Gross profit in 2025 would be:** [Input box]
**Requirement 2:**
How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025?
- **Cost of goods sold for 2026 would be:** [Input box]
- **By:** [Input box]
- **How would the inventory error affect Riderco Pool Supplies' gross profit for the year ended December 31, 2026, if the error is not corrected in 2025?**
- **Gross profit for 2026 would be:** [Input box]
- **By:** [Input box]
### Data Table
| Description | Amount |
|------------------------------------------|---------|
| **Net Sales Revenue** | $71,000 |
| **Cost of Goods Sold:** | |
| - Beginning Merchandise Inventory | $5,500 |
| - Plus: Net Cost of Inventory Purchased | $37,600 |
| **Cost of Goods Available for Sale** | $43,100 |
| - Less: Ending Merchandise Inventory | $4,100 |
| **Cost of Goods Sold** | $39,000 |
| **Gross Profit** | $32,000 |
#### Note:
Correcting inventory errors is crucial as they impact the financial statements by altering reported costs and profits, potentially misleading decision-makers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4971acb-5e4c-4bbe-8a68-29fa1157d0f8%2F3657b0b9-587a-4f2f-b3f9-61dd334908c5%2Fzdqy0jl_processed.png&w=3840&q=75)
Transcribed Image Text:### Riderco Pool Supplies: Inventory Data for the Year Ended December 31, 2025
#### Requirements
**Requirement 1:**
Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for the cost of goods sold and gross profit?
- **Cost of goods sold in 2025 would be:** [Input box]
- **What is the correct amount of gross profit?**
- **Gross profit in 2025 would be:** [Input box]
**Requirement 2:**
How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025?
- **Cost of goods sold for 2026 would be:** [Input box]
- **By:** [Input box]
- **How would the inventory error affect Riderco Pool Supplies' gross profit for the year ended December 31, 2026, if the error is not corrected in 2025?**
- **Gross profit for 2026 would be:** [Input box]
- **By:** [Input box]
### Data Table
| Description | Amount |
|------------------------------------------|---------|
| **Net Sales Revenue** | $71,000 |
| **Cost of Goods Sold:** | |
| - Beginning Merchandise Inventory | $5,500 |
| - Plus: Net Cost of Inventory Purchased | $37,600 |
| **Cost of Goods Available for Sale** | $43,100 |
| - Less: Ending Merchandise Inventory | $4,100 |
| **Cost of Goods Sold** | $39,000 |
| **Gross Profit** | $32,000 |
#### Note:
Correcting inventory errors is crucial as they impact the financial statements by altering reported costs and profits, potentially misleading decision-makers.
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