Navajo Company's year$-$end financial statements show the following. The company recently discovered that in making physical counts

of inventory, it had made the following errors: Year $1$ ending inventory is understated by $$61,000$ and Year $2$ ending inventory is

overstated by $$31,000.$

Required:

For each key financial statement figure$-(a),($b$),($c$),$ and $(d)$ above$-$prepare a table to show the adjustments necessary to correct

the reported amounts.

What is the total error in combined net income for the three$-$year period resulting from the inventory errors?

Complete this question by entering your answers in the tabs below.

For each key financial statement figure$-(a),(b),(c),$ and $(d)$ above$-$prepare a table to show the adjustments necessary to

correct the reported amounts.

Note: Amounts to be deducted must be entered with a minus sign.