Exercise $9-25($Algo$)$ Error correction; inventory error $[$LO$9-7]$

During $2024,$ WMC Corporation discovered that its ending inventories reported in its financial statements

were misstated by the following material amounts:

WMC uses a periodic inventory system and the FIFO cost method.

Required:

Determine the effect of these errors on retained earnings at January $1,2024,$ before any

adjustments. $($Ignore income taxes.$)$

Prepare a journal entry to correct the errors.

Complete this question by entering your answers in the tabs below.

Determine the effect of these errors on retained earnings at January $1,2024,$ before any adjustments. $($Ignore

taxes.$)$