Current Attempt in Progress

The reported net incomes for the first $2$ years of Carla Products, Inc., were as follows: $2020,$ $$155,500$; $2021,$ $$188,100.$ Early in $2022,$

the following errors were discovered.

Depreciation of equipment for $2020$ was overstated $$15,900.$

Depreciation of equipment for $2021$ was understated $$37,500.$

December $31,2020,$ inventory was understated $$48,400.$

December $31,2021,$ inventory was overstated $$15,800.$

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 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.$)$

Account Titles and Explanation

Debit

Credit

Retained Earnings

Inventory

Accumulated Depreciation$-$Equipment

eTextbook and Media

List of Accounts

Attempts: $0$ of $3$ used