Analyzing Impact of Inventory Errors on Reporting

The records of Largo Company reveal the following.

The following errors were found, and they have not yet been corrected.

Revenues of $$14,000$ collected in advance are included in Sales Revenue.

Accrued operating expenses of $$19,600$ are not recorded.

Goods costing $$28,000$ are incorrectly included in ending inventory. $($They are being held on consignment.$)$ No purchase was recorded.

Goods costing $$14,000$ are correctly included in ending inventory; however, no purchase was recorded $($assume a credit purchase$).$

a$.$ Prepare a revised income statement on a correct basis.

Note: Do not use negative signs with your answers.

b$.$ Determine the amount of overstatement or understatement in the following balance sheet accounts: $(1)$ Inventory, $(2)$ Accounts Payable, $(3)$ Deferred

Revenue, $(4)$ Accrued Expenses, and $(5)$ Retained Earnings.

Note: If a correction is not required, select $"$N$/$A$"$ and leave the amount answer blank $($zero$).$

Note: Do not use negative signs with your answers.