Linden Watch Company reported the following income statement data for a 2-year period 2019 2020 Sales $280,000 $320,000 Cost of goods sold Beginning inventory 32,000 44,000 Cost of goods purchased 193,000 225,000 Cost of goods available for sale 225,000 269,000 Ending inventory 44,000 52,000 Cost of goods sold 181,000 217,000 Gross profit $ 99,000 $103,000 Linden uses a periodic inventory system. The inventories on January 1, 2019, and December 31, 2020, are correct. However, the ending inventory on December 31, 2019, was overstated by $5,000.
Linden Watch Company reported the following income statement data for a 2-year period
2019 2020
Sales $280,000 $320,000
Cost of goods sold
Beginning inventory 32,000 44,000
Cost of goods purchased 193,000 225,000
Cost of goods available for sale 225,000 269,000
Ending inventory 44,000 52,000
Cost of goods sold 181,000 217,000
Gross profit $ 99,000 $103,000
Linden uses a periodic inventory system. The inventories on January 1, 2019, and
December 31, 2020, are correct. However, the ending inventory on December 31, 2019,
was overstated by $5,000.
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