This uestion: 1 pt 10 or 10 (7 complete) York Pool Supplies\'s merchandise inven

Question

This uestion: 1 pt 10 or 10 (7 complete) York Pool Supplies's merchandise inventory data for the year ended December 31. 2019, follow Click the icon to view the inventory data) d the requirements uirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1 800. What are the correct amounts for cost of goods sold and gross profit? t of goods sold in 2019 would be S at is the correct amount of gross profit? so profit in 2019 would be S affect New York Pool Supplies's cost of goods sold and gross profit for the year ended December 31 2020 i the error is not com quirement 2. How would the inventory error st of gods sold for 2020 would beby S s's gross profit for the year ended December 31, 2020 f the error is not corrected in 2019 w would the inventory error affect New York Pool Supplie ross profit for 2020 would be

Explanation / Answer

1)COst of goods sold 2019 : 32700 + 1800 = $ 34500

Gross Profit : 58000 - 34500 = $ 23500

2)Cost of goods sold will be overstated by $ 1800 If error is not corrected in 2020 .This is so because beginning inventory is overstated as a result cost of goods available for sale will be overstated .

Gross profit will be understated by 1800 in 2020   [because if overstated COGS)

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