Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Swifty Enterprises reported cost of goods sold for 2020 of $1,453,700 and retained earnings of $5,392,600 at December 31, 2020. Swifty later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $102,820 and $37,880, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings.

Sagot :

ayokenny2001

Answer:

Corrected cost of goods sold $1,388,760

Corrected retained earnings $5,354,720

Explanation:

First, we need to determine corrected cost of goods sold

Corrected cost of goods sold at December 31, 2020

= Beginning inventory - Purchases - Ending inventory

= $1,453,700 - [$102,820 - $37,880]

= $1,453,700 - $64,930

= $1,388,760

The December 31,2020 corrected retained earnings would be computed as;

= Ending retained earnings - Overstated ending inventories at December 31, 2020

= $5,392,600 - $37,880

= $5,354,720

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.