During 2014 Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2012 2013 $60,000 understated $75.000 overstated Paul uses the periodic inventory system. Prior to any adjustments for these errors and ignoring income taxes, Paul's retained earnings at January 1, 2014, would be Select one: Correct b. $15,000 overstated c$75,000 overstated d $135,000 overstated $15,000 understated