$148,0002023$overstated by$206,000$Lipe and Lipe uses the periodic inventory system and the FIFO cost method.Required:$1-$a$.$ Determine the effect of $2022$ errors on retained earnings at January $1,2024,$ before any adjustments. $($Ignore income taxes.$)1-$b$.$ Determine the effect of $2023$ errors on retained earnings at January $1,2024,$ before any adjustments. $($Ignore income taxes.$)2.$ Prepare a journal entry to correct the error in $2024\mathrm{.}3.$ Will Lipe and Lipe account for the error $($a$)$ retrospectively or $($b$)$ prospectively?