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O'Shea's General Store, in St. John's, NL, prepared the following analysis of cost of goods sold for the previous three years: Profit for the years 2020,2021 , and 2022 was $83,000,$32,000, and $67,000, respedrively. Since income had declined so much from 2020 to 2022, Mrs. O'Shea hired an accountant to investigate the cause(s) for the decline. The accountant determined the following: 1. Purchases of $42,000 that occurred in 2020 were not recorded until 2021. 2. The 2020 ending inventory should have been $23,000. 3. The 2021:ending inventory included inventory costing $6,000 that was purchased FOB destination point and was in transit at year end. 4. The 2022 ending inventory did not include goods costing $3,000 that were shipped on December 29 to Otter Plumbing Company, FOB shipping point. The goods were still in transit at the end of the year. O'Shea's General Store, in St. John's, NL, prepared the following analysis of cost of goods sold for the previous three years: Profit for the years 2020,2021 , and 2022 was $83,000,$32,000, and $67,000, respedrively. Since income had declined so much from 2020 to 2022, Mrs. O'Shea hired an accountant to investigate the cause(s) for the decline. The accountant determined the following: 1. Purchases of $42,000 that occurred in 2020 were not recorded until 2021. 2. The 2020 ending inventory should have been $23,000. 3. The 2021:ending inventory included inventory costing $6,000 that was purchased FOB destination point and was in transit at year end. 4. The 2022 ending inventory did not include goods costing $3,000 that were shipped on December 29 to Otter Plumbing Company, FOB shipping point. The goods were still in transit at the end of the year

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