Exercise 9-25 Error correction; Inventory error [LO9-7] During 2018. WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2016 2017 understated by overstated by $121,600 151.00 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of these errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) Retained earnings would be Required 2 > Exercise 9-25 Error correction; Inventory error (LO9-7] During 2018, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2016 2017 understated by overstated by $121,600 151, e8e WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required i Required 2 Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to correct the errors. Note: Enter debits before credits Event General Journal Debit Credit Coronto