In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $46,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required Required Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.) Retained earnings would be Required 1 Required 2 > Required Required Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to correct the errors. Note: Enter debits before credits. Event General Journal Debit Credit Record entry View general journal Clear entry