A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $2,700 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $2,700. Compute the amount of overstatement or understatement for each of the following amounts for this period. a. Ending inventory b. Total assets Net income C. d. Total equity Required information [The following information applies to the questions displayed below.] Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October. $3, 700 price ($3,626 net), inwoice dated October 2, terms 2/10, n/30 Oct. 2 Purchased merchandise at 10 Returned $850 ($833 net) of merchandise purchased on October 2, and debited its account s payable for that amount. 1T Purchased merchandise at $6, 800 price ($6,664 net) iwoice dated Oct ober 17, terms 2/10, n/30 27 Paid for the merchandise purchased on Oct ober 17, less the discount. 31 Paid for the merchandise purchased on Oct ober 2 (a) Prepare entries to record the above transactions assuming that Piere Imports records invoices at gross amounts. View transaction list Journal entry worksheet 1 2 3 4 5 Purchased merchandise at a $3,700 price ($3,626 net), invoice dated October 2, terms 2/10, n/30. Note: Enter debits before credits. Date General Journal Debit Credit Oct 02 co