Exercise 20-19 (Algo) Error correction; inventory error (LO20-6) During 2021. WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts 2019 understated by 2020 overstated by $152,000 214.000 WMC uses the periodic Inventory system and the FIFO cost method Required: 1-a. Determine the effect of 2019 errors on retained earnings at January 1, 2021, before any adjustments. Ignore income taxes) 1-b. Determine the effect of 2020 errors on retained earnings at January 1, 2021, before any adjustments, conore income taxes 2. Prepare a journal entry to correct the error in 2021 3. Will WMC account for the error (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. og 14 Reg 1B Reg 2 Reg Tetamine the effort of 2019 ron retained innsatlanta 1921 hafwany natin name avec Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Determine the effect of 2019 errors on retained earnings at January 1, 2021, before any adjustments. (Ignore in (If the answers is no effect then select "No effect" in the dropdown.) 20:19 Beginning inventory Plus net purchases Less ending inventory Cost of goods sold 2019 effect on 2021 Beginning inventory Plus net purchases Less ending inventory Cost of goods sold Revenues Less cost of goods sold Less other expenses Revenues Less, cost of goods sold Less other expenses Net Income Net Income Retained earnings Retained earnings Roq 18 > Prey 7 of 9 Next search Complete this question by entering your answers in the tabs below. Reg 1A Ren 18 Reg 2 Req 3 Determine the effect of 2020 errors on retained earnings at January 1, 2021, before any adjustments. (ignore incom (If the answers is no effect then select "No effect in the dropdown.) 2020 Beginning inventory Plus net purchases Less ending inventory Cost of goods sold Revenues Less cost of goods sold Less: other expenses Net Income Retained earnings KRA Reg2 Prey 7 of 9 Next > Journal entry worksheet 1 Record correction of error. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View Deneral journal Prey Next > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req 3 Will WMC account for the error (a) retrospectively or (b) prospectively? WMC account for the error