The Community Store Reported the Following Amounts on Their Financial

question 5

Essay

The Community Store reported the following amounts on their financial statements for Year 1,Year 2,and Year 3: It was discovered early in Year 4 that the ending inventory on December 31,Year 1 was overstated by $6,000,and the ending inventory on December 31,Year 2 was understated by $2,500.The ending inventory on December 31,Year 3 was correct.Ignoring income taxes determine the correct amounts of cost of goods sold,net income,total current assets,and equity for each of the years Year 1,Year 2,and Year 3.

---

Definitions:

Revoked

The act of officially canceling or withdrawing something, such as a license, permission, or legal right.

Invitation to Treat

An indication by a person that they are prepared to negotiate a deal, opening discussions for an offer, but it is not in itself a binding offer.

Catalogue

A comprehensive list or inventory, often detailed and organized, of items for sale or collection.

Breach of Contract

An infringement or violation of the terms agreed upon in a contract, resulting in legal liability.