Galena Pharmacy Reported Cost of Goods Sold as Follows Jim Holt the Bookkeeper Made Two Errors:
(1) 2016 Ending

Galena Pharmacy reported cost of goods sold as follows: $\begin{array}{lcc}& \underline{2016}& \underline{2017}\\\text {Beginning inventory}&54,000 & \$ 64,000 \\\text {Cost of goods purchased}& \underline{847,000} & \underline{891,000} \\\text {Cost of goods available for sale}&901,000 & 955, 000 \\\text {Ending inventory}& \underline{ 64,000} & \underline{55,000 }\\\text {Cost of goods sold}& \underline{ \$ 837,000} & \underline{ \$ 900,000}\end{array}$

Jim Holt the bookkeeper made two errors:
(1) 2016 ending inventory was overstated by $7000.
(2) 2017 ending inventory was understated by $16000.
Instructions
Assuming the errors had not been corrected indicate the dollar effect that the errors had on the items appearing on the financial statements listed below. Also indicate if the amounts are overstated (O) or understated (U). 11eb1392_1bf1_b3a7_8021_79c4e89749fb