Sheridan’s Hardware reported cost of goods sold as follows. 2022 2023Beginning inventory $ 25,000 $ 35,000Cost of goods purchased 140,000 170,000Cost of goods available for sale 165,000 205,000Ending inventory 35,000 40,000Cost of goods sold $130,000 $165,000Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000.Compute the correct cost of goods sold for each year. 2022 2023Cost of goods sold $enter a dollar amount $enter a dollar amount

Correct Ending Inventory for 2022 = Ending Inventory for 2022 - overstated amount = 35,000 - 4,000 =…

Answered: Sheridan’s Hardware reported cost of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sheridan’s Hardware reported cost of goods sold as follows.

	2022	2023
Beginning inventory	$ 25,000	$ 35,000
Cost of goods purchased	140,000	170,000
Cost of goods available for sale	165,000	205,000
Ending inventory	35,000	40,000
Cost of goods sold	$130,000	$165,000

Sheridan’s made two errors: (1) 2022 ending inventory was overstated $4,000, and (2) 2023 ending inventory was understated $6,000.

Compute the correct cost of goods sold for each year.

		2022		2023
Cost of goods sold		$enter a dollar amount		$enter a dollar amount

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