C$.$ Goode Eyeglasses overstated its inventory by $$30,000$ at the end of $2024.$

If the error is not discovered until $2026,$ before adjusting or closing entries, C$.$ Goode would need:

Multiple Choice

to record an increase in $2026$ retained earnings.

to reflect a prospective adjustment in its $2025$ income statement.

None of these answer choices are correct