inventory accounting

Required information P7-6 (Algo) Analyzing and Interpreting the Effects of Inventory Errors LO7-5 [The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $29,000. The company uses a periodic inventory system. P7-6 Part 1 Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error