Swifty Suppliers reported cost of goods sold for 2017 of $ 880,000 and retained earnings of $ 1,360,000 at December 31, 2017. Swiftylater discovered that its ending inventories at December 31, 2016 and 2017, were overstated by $ 40,000 and $ 72,600, respectively.Determine the corrected amounts for 2017 cost of goods sold and December 31, 2017, retained earnings.COGSRetained EarningsCorrected amounts$%24%24

Retained earnings represent the earnings of the company accumulated over a period of time.

Answered: Swifty Suppliers reported cost of goods…

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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Swifty Suppliers reported cost of goods sold for 2017 of $ 880,000 and retained earnings of $ 1,360,000 at December 31, 2017. Swifty later discovered that its ending inventories at December 31, 2016 and 2017, were overstated by $ 40,000 and $ 72,600, respectively.