Score: 0 of 5 pts 4 of 5 (0 complete) HW E6-23 (book/static) Hot Bread Bakery re

Question

Score: 0 of 5 pts 4 of 5 (0 complete) HW E6-23 (book/static) Hot Bread Bakery reported net sales revenue of S44,000 and cost of gods sokd of $33,000. Compute Hot Bread's corect gross profie if the comipany made cither of the folowing independent accounting errors. a. Ending merchandlse Inventory Is overstated by $8,000. b. Ending mcrchandise inventory is understated by S8,ov. Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory (b) Understated by $8,000 As Reported- (a) Overstated by $8,000 Incorrect Not sales revenue Cost of goods sold Gross protit $ 44,000 $ 33,000 44,000 S 4,000

Explanation / Answer

Answer:-

Ending merchandise inventory Particulars As Reported-Incorrect Corrected for the error Overstated by $8000 Understated by $8000 Net sales revenue 44000 44000 44000 Less:- Cost of goods sold 33000 33000-8000=25000 33000+8000=41000 Gross profit 11000 19000 3000

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