In 20X7, after the 20X6 annual financial statements had been issued, Marcella Stores Inc. discovered that a significant transposition error had been made in recording the ending inventory for 20X6. The inventory had been recorded as $1,722,000 when it should have been $1,272,000. The average income tax rate is 40%. Required: 1. Not available in connect. 2. Prepare any journal entries that would be necessary in 20X7 to correct this error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. not available on connect.