Problem - The Sandy's Gourmet Foods' merchandise inventory data for the year ended December 31, 2015, follow:
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Sales Revenue
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$70,000
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Cost of goods Sold:
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|
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Beginning Merchandise inventory
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$3,500
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|
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Net Cost of Purchases
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20,000
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|
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Cost of Goods Available for Sale
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23,560
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|
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Less: Ending Merchandise inventory
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5,200
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|
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Cost of Goods Sold
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18,360
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Gross Profit
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$51,640
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Required - Assume that the ending merchandise inventory was accidentally overstated by $2.100. What are the correct amounts for cost of goods sold and gross profit?