Problem
Marin Enterprises reported cost of goods sold for 2017 of $1, 322, 900 and retained earnings of $4, 854,000 at December 31, 2017. Marin later discovered that its ending inventories at December 31, 2016 and 2017, were overstated by $106, 470 and $36, 820, respectively.
Determine the corrected amounts for 2017 cost of goods sold and December 31, 2017, retained earnings.