Peaceful Carpets' books show the following data. (Click the icon to view the income statements.) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by S4,000 and that the ending merchandise inventory for 2025 was overstated by $5,000. The ending merchandise inventory at December 31, 2024, was correct. Peaceful Carpets Income Statement For the Years Ended December 31, 2025, 2024, and 2023 2025 2024 Ending Merchandise Inventory Overstated by $5,000 Correct 2023 Ending Merchandise Inventory Understated by $4,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income i Data Table 2025 2024 2023 $ 215,000 $ 166,000 175,000 $ 19,000 140,000 $ 25,000 94.000 42,000 81,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses 159,000 29,000 119,000 19,000 123,000 25.000 130,000 100,000 98,000 85,000 55,000 30,000 66,000 39,000 77,000 39,000 $ 27,000 38,000 Net Income