Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Prunedale cost of goods sold for this year was:
A. Overstated by $94,000.
B. Overstated by $30,000.
C. Understated by $94,000.
D. Understated by $30,000.
Answer: A. Overstated by $94,000.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.