Vaughn Enterprises reported cost of goods sold for 2025 of $1,274,500 and retained earnings of $5,056,200 at December 31, 2025. Vaughn later discovered that its ending inventories at December 31, 2024 and 2025, were overstated by $108,510 and $34,900, respectively. Determine the corrected amounts for 2025 cost of goods sold and December 31, 2025, retained earnings. Corrected cost of goods sold $ Corrected 12/31/25 retained earnings $
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- Overstating ending inventory decreases COGS. - Overstating beginning inventory increases COGS. Show more…
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