Bramble Enterprises reported cost of goods sold for 2020 of $1,474,700 and retained earnings of $5,621,900 at December 31, 2020. Bramble later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $109,760 and $36,670, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings. Corrected cost of goods sold $enter a dollar amount Corrected 12/31/20 retained earnings $enter a dollar amount
Calculation of Correct Cost of Goods Sold | |
Cost of goods sold reported overstated ending | 1,474,700 |
Overstated ending Inventory of 2020 | 36,670 |
Overstated ending inventory of 2019 | -109,760 |
Correct cost of goods sold | $1,401,610 |
Calculation of Correct Retained earnings | |
Retained earnings reported | 5,621,900 |
Overstated ending Inventory of 2020 | -36,670 |
Overstated ending inventory of 2019 | 109,760 |
Correct retained earnings | $5,694,990 |
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