Haywood Inc. reported the following information for 2019: Beginning inventory $25,000 Ending inventory 50,000 Sales...
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Accounting
Haywood Inc. reported the following information for 2019:
Beginning inventory $25,000
Ending inventory 50,000
Sales revenue 1,000,000
Cost of goods sales 620,000
A physical count of inventory at the end of the year showed that ending inventory was actually $65,000
Required:
1. What is the correct cost of goods sold and gross profit for 2019?
2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020?
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