During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 understated by 2020 overstated by $126,000 156,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021 before any adjustments, Ignore income taxes! 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes. Fisland samings would be Required 2> a eferences Required Required 2 Prepare a journal entry to correct the erroes fettry is required for a transaction/event, elect" jumatantry required in the fest account field View transaction Journal entry worksheet < 1 Record the entry to correct the errors. Event General Jal Cell $ Cleary