In year one, our company understated our ending inventory by $8,500 (an accounting error). Ignoring income taxes, type'"U" in the yellow spaces in front of the items that are understated, and "0" in the blanks of those items that are overstated. Type "N" for any items that are neither understated nor overstated Accounts receivable balance on the balance sheet - Year 1 Accounts payable on the balance sheet - Year2 Ending retained earnings - Year 2 Cost of goods sold - Year 1 Net income - Year 2 Ending retained earnings - Year 1 Net income-Year 1 Beginning inventory - Year2 Cost of goods sold - Year 2