Part (B) Kermode Merchandising Limited (KML) is listed on the TSX, has a December 31 year end, and uses a periodic inventory system. In February 20X3, a detailed examination of company record revealed the following additional new information about the company: 1. Due to an error made by KML employees in the 20X1 inventory count, several inventory items were counted twice and the December 31. 20X1 merchandise inventory was overstated by $87,000 2. Included in KML's December 31, 20X1 inventory count was $90.000 of merchandise purchased from a supplier. The merchandise was shipped f.o.b. destination and the goods arrived at KML's warehouse on December 29, 20X1. The invoice from the supplier arrived in the following week and was received and recorded by KML on January 4 20X2 3. Not included in the December 31, 20X1 inventory count was $159,000 of merchandise shipped to a customer on December 29, 20X1 f..b. destination. On December 30, 20X1. KML sent an invoice to this customer and, on the same date, recorded the shipment as a sale on account for S195,000. The customer sent a message to KML on January 7, 20X2 acknowledging that this shipment of merchandise had arrived in good order on January 6 20X2 4. Also not included in the December 31. 20Xl inventory count was S319.000 of 31, 20X1 f..b. shipping point On January 2. 20X2. KML sent an invoice to this customer and, on the same date, recorded the shipment as a sale on account for $391,000. The customer sent a message to KML on January 9, 20X2 acknowledging that this shipment of merchandise had arrived merchandise shipped to another customer on December in good order on January 8, 20X2 Required () Calculate the combined effect of the errors, if any, related to the above items on KML's 20X2 net income. Assume that none of the errors has been corrected and all dollar amounts involved are material. Ignore the effects of income tax. Show the effects of individual items as supporting calculations (ii) Prepare the appropriate correcting entry/entries that KML should make in February 20X3 for the errors, if any, related to each of the above items assuming that the books for the fiscal year ended December 31. 20X2 are still open