1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Jun. 1 Sold merchandise inventory on account to Castle Company, $1,510. Sold merchandise inventory for cash, $725. Jun. 6 Jun. 12 Received cash from Castle Company in full settlement of its accounts receivable. Jun. 20 Sold merchandise inventory on account to Indigo Company, $950. Sold merchandise inventory on account to Dobson Company, $250. Jun. 22 Jun. 28 Received cash from Indigo Company in partial settlement of its accounts receivable, $250. Cardinal Corporation had the following transactions in June: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations. (Record debits first, then credits. Exclude explanations from journal entries.) Jun. 1: Sold merchandise inventory on account to Castle Company, $1,510. Date Accounts and Explanation Debit Credit Jun. 1