Current Attempt in Progress

The reported net incomes for the first $2$ years of Marin Products, Inc., were as follows: $2025,$$$161,400$;$2026,$$$190,800.$ Early in $2027,$ the following errors were discovered.

Depreciation of equipment for $2025$ was overstated $$18,600.$

Depreciation of equipment for $2026$ was understated $$40,900.$

December $31,2025,$ inventory was understated $$46,500.$

December $31,2026,$ inventory was overstated $$16,200.$

Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. $($Ignore income tax considerations.$)($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit