Add-Subtract Formula

Question 1

Cost of Goods Manufactured (GOGM)

Answer 1

Beg. Inv
Plus: (COGM)
Subtotal
Less: COGS
End. Inv

Question 2

Allowance for Doubtful Accounts

Answer 2

Beg. Allow for Doubtful Accounts
Plus: Bad Debt Expense
Subtotal
Less: Write-offs
End. Allow for Doubtful Accounts

Question 3

Calculate COGS with the following BI (Understated), EI (Overstated)

Answer 3

Beg. Inv 0 - understatement
Plus: Purchases
Total Available For Sale
COGS (plug)
End. Inv. 0 + overstatement