P 8-5 LO2 The Effect of Inventory Errors The accountant for Steele Company reported the following accounting treatments for several purchase transactions (FOB shipping point) that took place near December 31, 2022, the company's year-end: Was the Purchase Recorded in the Books on or before December 31, 2022? Was the Inventory Counted and Included in Inventory Balance on December 31, 2022? Date Inventory Was Shipped Amount Yes Yes No $1,100 800 1,800 Yes No Yes 2022: December 26 December 29 December 31 2023 January 1 January 1 January 1 No Yes No 300 3,000 600 Yes No No 1. Required: If Steele Company's records reported purchases and ending inventory balances of $80,800 and $29,800, respectively, for 2022, what would the proper amounts in these accounts have been? 2. What would be the correct amount of cost of goods sold for 2022, if the beginning inventory balance on January 1, 2022, was $20,2002 3. By how much would cost of goods sold be over- or understated if the corrections in question (1) were not made