please give solutions of 2 and 3 questions periodic inventory system. The inventories at January 1, 2016, and DecemberSmart uses a31, 2017, are correct. However, the ending inventory at December 31, 2016, was overstated$6,000.Instructions(a) Prepare correct income statement data for the 2 years. I(b) What is the cumulative effect of the inventory error on total gross profit for the 2years?Explain in a letter to the president of Smart Watch Company what has hap-pened, i.e., the nature of the error and its effect on the financial statements.005 ComputeE6-10 Smart Watch Company reported the following income statement data for a 2-yearperiod.Sales revenueCost of goods soldBeginning inventoryCost of goods purchasedCost of goods available for saleEnding inventoryCost of goods soldGross profit2016$220,00032,000173,000205,00044,000161,000$ 59,000bon2017$250,00044,000202,000246,00052,000194,000$ 56,000

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Description: please give solutions of 2 and 3 questions periodic inventory system. The inventories at January 1, 2016, and DecemberSmart uses a31, 2017, are correct. However, the ending inventory at December 31, 2016, was overstated$6,000.Instructions(a) Prepare

Income Statement: One of a company's financial accounts, an income statement, commonly referred to…

Business

Accounting

E6-10 Smart Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2016 $220,000 32,000 173,000 205,000 44,000 161,000 $ 59,000 2017 $250,000 44,000 202,000 246,000 52,000 194,000 $ 56,000

E6-10 Smart Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2016 $220,000 32,000 173,000 205,000 44,000 161,000 $ 59,000 2017 $250,000 44,000 202,000 246,000 52,000 194,000 $ 56,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...

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