A company overstated its ending inventory balance by $7,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? 2021 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...
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A company overstated its ending inventory balance by $7,000 in 2021.
What impact will this error have on cost of goods sold and gross profit in 2021 and 2022?
2021
Cost of goods sold
Gross profit
2022
Cost of goods sold
Gross profit
Transcribed Image Text:A company overstated its ending inventory balance by $7,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? 2021 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit
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