Answer:
$146,500; $194,000
Explanation:
(1) Correct amount of cost of goods sold for 2019:
= Beginning inventory + Cost of goods purchased - Correct ending inventory
= $23,000 + $153,500 - (Ending inventory value - Overstated value)
= $23,000 + $153,500 - ($33,500 - $3,500)
= $23,000 + $153,500 - $30,000
= $146,500
(2) Correct amount of cost of goods sold for 2020:
= Beginning inventory + Cost of goods purchased - Correct ending inventory
= $33,500 + $191,500 - (Ending inventory value - Understated value)
= $33,500 + $191,500 - ($37,500 - $6,500)
= $33,500 + $191,500 - $31,000
= $194,000
