Help Save & E HW Check You have been hired as the new controller for the Ralston Company Shortly after joining the company in 2018, you discover the following errors related to the 2016 and 2017 financial statements: a Inventory at Dr was understated by 6000 b. Inventory at 12/31/17 was overstated by $9.900 On 3117 inventory was purchased for $3.900. The company did not record the purchase until the inventory was paid for early in 2018 At that time, the purchase was recorded by a debit to purchases and a credit to cash The company uses a periodic inventory system Required 1. Assuming that the errors were discovered after the 2017 financial statements were issued, analyze the effect of the errors on 2017 and 2016 cost of goods sold, net income, and retained earnings (gnore 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 Assuming that the errors were discovered after the 2017 financial statements were issued, analyze the effect of the errors on 2017 and 2016 cost of goods sold, net income, and retained earnings (Ignore income taxes.) 2015 Ending inventory Cost of goods sold Net income Retained earnings w @ Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, selec first account field.) View transaction list Journal entry worksheet Record the entry to correct inventory valuation. Note: Enter debits before credits. Debit Credit General Journal Event Record entry Clear entry View general journal