During 2021. WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: WMC uses the periodic inventory system and the FIFO cost method. Required: 1.-. Determinie the effect of 2019 errors on retained earnings at January 1, 2021, before any adjustments. (lanore income taxes) 1.b. Determine the effect of 2020 errors on retained earnings at January 1. 2021, before any adjustments. (lgnore income taxes-) 2. Prepare a journal entry to correct the error in 2021 . 3. WIII WMC account for the error (a) retrospectively or (b) prospectively? \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{} & \multicolumn{1}{|c|}{2020} \\ \hline Beginning inventory & & Beginning inventory \\ \hline Plus: net purchases & & Plus: net purchases \\ \hline Less; ending inventory & & Less: ending inventory \\ \hline Cost of goods sold & & Cost of goods sold \\ \hline & & \\ \hline Revenues & & Revenues \\ \hline Less; cost of goods sold & & Less: cost of goods sold \\ \hline Less: other expenses & & Less. other expenses \\ \hline Net income & Net income \\ \hline & & \\ \hline Retained earnings & & Retained earnings \\ \hline \end{tabular} Record correction of error. Note: Enter debits before credits. Will WMC account for the error (a) retrospectively or (b) prospectively