UESTION 3 Dexter, Inc. follows a calendar-year end. Its financial statements for the years Y2 and Y1 contained errors as follows: Y2 Y1 Ending Inventory $3,000 Overstated $8,000 overstated Assume that no correcting entries were made at in either year. Determine the following: Indicate the effect on Y2 Net Income (Ignore taxes. Indicate O for Overstated; U for Understated; or NE. STATE THE O/U/NE first, then the DOLLAR AMOUNT of the error. Do not put a space in between the O/U/NE and the dollar amount.) Indicate the effect on Y2 Ending Retained Earnings Ignore taxes. Indicate 0 for Overstated; U for Understated; or NE. State the auNE first, then the dollar amount Do NOT put a space in between the O/U/NE and the dollar amount.)