In early 2021, Woof's Pet Shop discovered that some of its inventory of dogs were not what the supplier purported them to be. More than 550 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, 300 of these puppies had been sold while 250 remained in inventory. Purebred puppies cost $150 each, and they would retail for $410. Non-purebreds have replacement cost of $40 each, and the estimated sale price is $80 each. Woof is pursuing the supplier to obtain a refund for the cost difference. However, whether there will be compensation is uncertain. Required Requirement a. Record the journal entry for the write-down of puppy inventory on December 31, 2020. Note any assumptions necessary. The puppy inventory needs to be written down because the per puppy is lower than the Now, prepare the journal entry for the write-down of puppy inventory on December 31, 2020. (Record debits first, and then credits. Explanations are not required.) Date Accounts Debit Credit Dec 31, 2020 Requirement b. Suppose the error (non-purebreds treated as purebreds) had not been discovered. Indicate the effect of this error on the following accounts (i.e., were they over- or understated and by how much?): Account Overstated or understated? Amount Inventory, December 31, 2020 Cost of goods sold, year 2020 Cost of goods sold, year 2021