Please solve for Requirement #2

The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $467,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $67,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $28,500 was correctly recorded as a purchase in 2021. However, the merchand ise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the physical count. A third purchase, shipped from a supplier FOB shipping point on December 28, 2021, did not arrive until January 3, 2022. The merchandise, which cost $97,000, was not included in the physical count and the purchase has not yet been recorded. 16.7 points The company uses a periodic inventory system. Required: 1. Determine the correct December 31, 2021, inventory balance and, assuming that the errors were discovered after the 2021 financial statements were issued, analyze the effect of the errors on 2021 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Determine the correct December 31, 2021, inventory balance and, assuming that the errors were discovered after the 2021 financial statements were issued, analyze the effect of the errors on 2021 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) Show lessA Effect Amount $ 592,500 $ 38,500 $ 38,500 $ 38,500 Correct ending inventory Cost of goods sold Net income Retained earnings Understated Overstated Overstated Required 2 Required 1 Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a journal entry to correct the errors. (If no entry is required for a tranwoton/Peveent, select "No journal entry required" in the first accounte fieloe.) No Transaction General Journal Debit Credit Retained earnings Inventory Purchases 38,500 125,500 1 1 Required 1 Required 2