For each of the following independent scenarios, indicate the effect of the error $($if any$)$ on:

i$.2023$ net income

ii$.2024$ net income

iii. $2024$ closing retained earnings

The company uses the periodic system of inventory and its fiscal year$-$end is December $31.$ Ignore income tax effects.

a$.$ Your analysis of inventory indicates that the balance at the end of $2023$ was understated by $$19,000$ due to an inventory count error. Inventory at the end of $2024$ was correctly stated.

b$.$ Invoices in the amount of $$24,000$ for inventory received in December $2023$ were not entered on the books in $2023.$ They were recorded as purchases in February $2024$ when they were paid. The goods were included in the $2023$ inventory count and included in ending inventory on the $2023$ balance sheet.

c$.$ Goods sold but held in the warehouse by customer request, costing $$45,000,$ were included in the physical count of goods at the end of $2024$ and included in ending inventory on the $2024$ financial statements.