Dr. Drake Ramoray is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Ending Inventory Sales Revenue 2020 $40,000 understated $25,000 understated 2021 24,000 understated 37,000 understated Assume that purchases were recorded correctly and that have been no correcting entries made to either 2020, or 2021. It is now January 1, 2022, and suppose the books are closed for 2020, but not 2021. Ignoring income taxes, by how much should Drake directly adjust retained earnings in their correcting journal entry? $15,000 decrease $38,000 decrease $15,000 increase $65,000 increase $86,000 increase $126,000 decrease None of the given answers O $38,000 increase $126,000 increase $9,000 increase 3 pts 4