Exercise $5-3$ Error correction $($LO$5-2)$

Tack, Inc., reported a Retained earnings balance of $$150,000$ at December $31,20$X$0.$ In June $20$X$1,$ Tack's internal audit staff

'discovered two errors that were made in preparing the $20$X$0$ financial statements that are considered material:

a$.$ Merchandise costing $$40,000$ was mistakenly omitted from the $200$ ending inventory.

b$.$ Equipment purchased on July $1,20$X$0,$ for $$70,000$ was mistakenly charged to a repairs expense account. The equipment should

have been capitalized and depreciated using straight$-$line depreciation, a $10-$year useful life, and $$10,000$ salvage value.

Required:

Prepare the journal entry Tack would make in $201$ $o correct the errors made in $200.$ Assume depreciation for $201$ is made as a

year$-$end adjusting entry. $($Ignore taxes.$)($If no entry $\frac{Is}{?}$ required for a particular transaction, select $"$No journal entry required" in

the first account field.$)$