John’s Septic Systems Company reported the comparative income statement for the years ended September 30, 2023, and 2022, shown below:

During 2023, accountants for the company discovered that ending 2022 inventory was overstated by $5,000. Prepare the corrected comparative income statement for the 2-year period, complete with a heading for the statement. What was the effect of the error on net income for the 2 years combined? Explain your answer.

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JOHN'S SEPTIC SYSTEMS COMPANY Income Statement For the Years Ended September 30, 2023 and 2022 2023 Sales revenue Cost of goods sold Beginning inventory Net purchases Cost of goods available for sale Ending inventory Cost of goods sold Gross margin Operating expenses Net income $ 16,500 91,000 107,500 23,600 $165,000 83,900 81,100 40,000 $ 41,100 2022 $15,400 78,000 93,400 16,500 $146,000 76,900 69,100 30,000 $ 39,100