4 During 2016, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 1.5 points 2014 understated by $133,000 2015 overstated by 163,000 eBook WMC uses a periodic inventory system and the FIFO cost method. Print ReferencesRequired: . Determine the elfect of these errs on retained earings at January 1, 2016, before any adjustments. (lgnore income taxes.) Retained earnings would be 2. Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to correct the errors