Exercise 9-25 (Algo) Error correction; inventory error [LO9-7] During 2021. 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 FFO cost method. Required: 1. Determine: the effect of these errors on retained earnings at Janiary 1, 2021, before any adjustments, (lgnore income taxes.) 2. Prepate 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 lanuary 1,2021, bofore any ad) ustmentsi. (Ignore incomre taxes.)