Save CI 3 You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021. you discover the following errors related to the 2019 and 2020 financial statements 3.34 points a. Inventory at 12/31/2019 was understated by $6,500 b. Inventory at 12/31/2020 was overstated by $10,000 con 12/312020, Inventory was purchased for $3,500. The company did not record the purchase on the inventory was paid # early in 2021. At that time, the purchase was recorded by a debit to purchases and a credit to cash beteren The company uses a periodic Inventory system, Required: 1. Assuming that the errors were discovered after the 2020 financial statements were issued analyze the effect of the errors on 2020 and 2019 cost of goods sold, net income, and retained earnings are income taxes 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Reed 1 Recured Assuming that the errors were discovered after the 2020 financial statements were issued, analyze the effect of the 2020 and 2019 cost of goods sold, net income, and retained earnings (Ignore income taxes indicate the effect betong donderstated and "NE for Noelect out all values as positive amount to end