During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: understated by 2019 $136,000 166,e00 2020 overstated by 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.) Retained earnings would be Required 1 Required 2 > Required 2 Required 1 entry is required for a transaction/event, select "No journal entr Prepare a journal entry to correct the errors. (If first account field.) no View transaction list Journal entry worksheet 1 Record the entry to correct the errors. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal