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Attempt in Progress Pharoah Company reported the following amounts for its cost of goods sold and ending inventory: Support 2021 2020 Cost of goods sold $195.000 $200,000 Ending inventory 30,000 30,000 Pharoah made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Calculate the correct cost of goods sold and ending inventory for each year. 2021 2020 Correct ending inventory $ $ Correct cost of goods sold $ $ Describe the impact of the errors on profit for 2020 and 2021 and on owner's quity at the end of 2020 and 2021 In 2020 prohitis the amount of the error in ending inventory. This error flows through to war In 2021 both errors have an impact. The net effect is an of profit by $ This is a result of the 55 500 Owner's equity in 2021 would show only an of s The $5,500 of the errors on prottor 2020 and 2021 and on owner's equity at the end of 2020 and 2021. ont of the error in ending inventory. This error flows through to owner's equity in 2020 to produce an of This is a result of the $5.500 of the beginning inventory pluss of ending inventory The 5.500 of 2020 would be offset by the $5,500 in profit caused by the impact on beginning inventory in 2021 Textbook and Media Attempts: 0 of 3 used be the act of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021 by s the amount of the error in ending inventory. This error flows through to owner's equity in 2000 to pro of prot by This is a result of the $5.500 of the begin of 5 The $5,500 w of 2020 would be offset by the 55500 Tonbook and Media

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