INTRO TO CANADIAN FINANCIAL ACCOUNTING -

Please explain for each incident (1-5); Why the assets, Profits & retained earnings have either NE(no effect) , Understated , Overstated

[SOLUTIONS ARE POSTED BELOW THE QUESTION (2nd photo)

The internal auditors discovered that the ending inventory in the previous period was understated $15,000 and that the ending inventory in the current period was overstated $25,000.