Great Foods Grocery reported the following comparative income statements for the years ended November $30,2026$ and $2025$ :

View the comparative income statement.

During $2026,$ Great Foods Grocery discovered that ending $2025$ merchandise inventory was overstated by $$2,500.$

Read the requirements.

Requirement $1.$ Prepare corrected income statements for the years ended November $30,2026$ and $2025.$

Requirements

Prepare corrected income statements for the years ended November $30,2026$ and $2025.$

State whether each year's net income$-$before your corrections$-$is understated or overstated, and indicate the amount of the understatement or overstatement.

Comparative income statement

$\backslash$table$[[\backslash$table$[[$Great Foods Grocery$],[$Income Statements$],[$Years Ended November $30,2026$ and $2025]]],[,2026,2025],[$Net Sales Revenue,$$144,000,$$$124,000$