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Ajax Inc. is a calendar-year corporation whose financial statements for 2023 - 2025 included the following errors: Year 2023 2024 2025 Ending Inventory $500 overstated

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Ajax Inc. is a calendar-year corporation whose financial statements for 2023 - 2025 included the following errors: Year 2023 2024 2025 Ending Inventory $500 overstated $1,000 understated $750 understated Ajax found these errors in 2026. Ignoring income taxes, 1. Using the COGS and income statement tracking schedule to determine which accounts are overstated/understated in 2023, 2024, and 2025, and the amounts of error. 2. Prepare the journal entry in 2026 to correct the errors

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