-- Required information [The following information applies to the questions displayed below.] Luther has a bird...

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-- Required information [The following information applies to the questions displayed below.] Luther has a bird shop that sells canaries. Luther maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 Transactions Beginning inventory Purchase Purchase October 29 Purchase January 1 to December 31 Sales ($52 each) Units 27 Unit Cost Total Cost $32 $864 72 34 2,448 122 36 4,392 87 38 3,306 308 $11,010 272 Luther uses a periodic inventory system and believes there are 36 birds remaining in ending inventory. However, Luther neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 26 birds in ending inventory. Luther is not aware of the lost canaries. 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? (a) Ending inventory (b) Retained earnings (c) Cost of goods sold (d) Net income 2024 -- Required information [The following information applies to the questions displayed below.] Luther has a bird shop that sells canaries. Luther maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 Transactions Beginning inventory Purchase Purchase October 29 Purchase January 1 to December 31 Sales ($52 each) Units 27 Unit Cost Total Cost $32 $864 72 34 2,448 122 36 4,392 87 38 3,306 308 $11,010 272 Luther uses a periodic inventory system and believes there are 36 birds remaining in ending inventory. However, Luther neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 26 birds in ending inventory. Luther is not aware of the lost canaries. 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? (a) Ending inventory (b) Retained earnings (c) Cost of goods sold (d) Net income 2024