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Problem - The Sandy's Gourmet Foods' merchandise inventory data for the year ended December 31, 2015, follow:
Sales Revenue
$70,000
Cost of goods Sold:
Beginning Merchandise inventory
$3,500
Net Cost of Purchases
20,000
Cost of Goods Available for Sale
23,560
Less: Ending Merchandise inventory
5,200
Cost of Goods Sold
18,360
Gross Profit
$51,640
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?
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