Wilkins Food Products Inc acquired a packaging machine from Lawrence Specialists Corporation Lawrence completed construction of the machine on January 1, 2019. In payment for the machine Wilkins issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2021. As a result of the error, Wilkins understated interest expense by $45,000 in 2019 and $40,000 in 2020 Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 and whether those accounts are understated or overstated. Ognore income taxes.) 2. Prepare a journal entry to correct the error 3. Will Wilkins account for the error (a) retrospectively or (b) prospectively? Account 2019 2020 Interest expense Notes payable Cash Interest expense Amortization expense X Understated Understated X Overstated Overstated X Overstated X Understated X X Understated X Understated X X Overstated Overstated X Rege