in early 2021, Canine's Pet Shop discovered that some of its inventory of dogs were not what the supplier purported them to be more than 200 puppies that were supposed to be purebred (and therefore expensive) were in fact sired by parents with unknown history. As of the fiscal year ended December 31, 2020, 120 of these puppies had been sold while 80 remained in inventory Purebred puppies cost $190 each and they would retail for $465 Non purebreds have replacement cost of $95 each, and the estimated sale price is $120 each Canine is pursuing the supplier to obtain a refund for the cost difference. However, whether there will be compensation is uncertain Required The puppy inventory noods to be written down because the net realizable value (NRV) per puppy is lower than the cost Now, prepare the journal entry for the write-down of puppy Inventory on December 31, 2020 (Record debets first, and then credits Explanations are not required Date Accounts Dec 31, 2020 Loss on write down of inventory (or cost of sales) Inventory Debit Credit Requirement b. Suppose the error (non purebreds treated as purebreds) had not been discovered Indicate the effect of this entor on the following accounts de were they over or understated and by how much?) Amount Account Inventory, December 31, 2020 Cost of goods sold year 2020 Cost of goods sold year 2021 Overstated or understated? Overstated Understated Overstated Choose from any list or enter any number in the input fields and then continue to the next