Part II (10 marks) Lemon Corp.'s business year ends on December 31. They use the periodic inventory system. Listed below are purchase transactions that occurred during the last few days of 2020 or during the rst few days of 2021. The inventory, determined by physical count, was taken after the close of business on December 31, 2020. The only adjusting entry recorded to date has been to enter the December 31 physical inventory on the books and to remove the beginning inventory. Instructions a. On the accompanying chart, indicate the effect of each of the following transactions on the ending inventory and on reported net income for 2020, by writing the words overstated, understated, or no effect in the appropriate column. Both columns must be answered for each transaction. Dec. 3 1/20 Physical 2020 Inventory Income 1. An invoice for $6,000, terms f.o.b. shipping point, was received and recorded on Dec. 30. The invoice shows that the merchandise was shipped on Dec. 29, and the receiving report indicates the merchandise was received on Jan. 2. b. An invoice for $250, terms f.o.b. shipping point, was received and recorded on Dec. 30. The invoice shows that merchandise was shipped on Dec. 29, and the receiving report shows the merchandise was received on Dec. 31. An invoice for $1,000, terms f.o.b. shipping point, was received and recorded on Jan. 2. The invoice shows the merchandise was shipped on Dec. 30, and the receiving report indicates the merchandise was received on Dec. 31. An invoice for $800, terms f.o.b. destination, was received and recorded on Dec. 30. The receiving report shows the merchandise was received on Jan. 2. An invoice for $150, terms f.o.b. destination, was received and entered Dec. 29. The receiving report indicates that the merchandise was received Dec. 31. An invoice for $400, terms f.o.b. destination, was received and recorded on Jan. 2. The receiving report indicates the merchandise was received on Dec. 31. Merchandise costing $14,000 and with a selling price of $20,000 was on consignment to Grapefruit Ltd., and was on that company's premises on Dec. 31. No entry has been yet been made regarding this consignment. Prepare all necessary correcting entries for 2020