if-the-correct-ending-inventory-is-30000-and-the-incorrect-ending-inventory-is-3

Question

If the correct ending inventory is $30,000 and the incorrect ending inventory is $35,000, what is the impact on cost of goods sold?

Accepted Answer

Cost of goods sold is understated by $5,000.

Answer

Cost of goods sold is overstated by $5,000.

Answer

Cost of goods sold is unaffected.

Answer

Cost of goods sold is understated by $10,000.

If the correct ending inventory is \$30,000 and the incorrect ending inventory is \$35,000, what is the impact on cost of goods sold?