In early 2022 you are hired as the new Controller for ABC, Co. You discover a variety of inventory errors. ABC uses the periodic method and uses a Purchases account to accumulate inventory purchases during the year. ABC has a 12/31 year end.

1. Purchases in 2020 are overstated by $5,000 since an invoice was entered and paid twice in error. The error was discovered in 2021 and the vendor gave the company a cash refund in 2021 for the overpayment. The company credited Purchases in 2021 when the cash refund was received.

2. Ending inventory at 12/13/20 is understated by $10,000.

3. Purchases in 2021 are understated by $4,000. These items were received in December 2021 but were recorded in purchases in January 2022 when they were paid.

4. Ending inventory at 12/31/21 is understated by $12,000.

5. Ending inventory as reported in the 2021 Annual Report amounted to $600,000. The 2021 Annual Report was issued before the above errors were identified.

Prepare the opening balance sheet JE at 1/1/2022 related to the above items and any other correcting JE which may be required in 2022.