! Required information Exercise 6-20A Find financial statement effects of understatement in ending inventory (LO6-9) [The following information applies to the questions displayed below.] Mulligan Corporation purchases inventory on account with terms FOB shipping point. The goods are shipped on December 30, 2021, but do not reach Mulligan until January 5, 2022. Mulligan correctly records accounts payable associated with the purchase but does not include this inventory in its 2021 ending inventory count. Exercise 6-20A Part 1 Required: 1. State whether an error has been made. Yes O No 2. If an error has been made, indicate whether there is an understatement (U), overstatement (O), or no effect (N) on the reported amount of each financial statement element in the current year and following year. Ignore any tax effects. Balance Sheet Income Statement Cost of goods sold Year Assets Stockholders' equity Liabilities Revenues Gross Profit Current Following