Exercise 5-2 Error correction (LO5-2)

Bettner, Inc., is a calendar-year corporation whose financial statements for 20X0 and 20X1 included errors as follows:

Year	Ending Inventory			Depreciation Expense
20X0	$	12,000	overstated	$	22,300	overstated
20X1		8,000	understated		6,000	understated

Assume that inventory purchases were recorded correctly and that no correcting entries were made at December 31, 20X0, or December 31, 20X1. The errors were discovered in 20X2, after the 20X1 financial statements were issued.

Required:

1. Ignoring income taxes, prepare the journal entry Bettner would make in 20X2 to correct the errors. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)