In $2024,$ the controller of Sytec Corporation discovered that $$76,000$ of inventory purchases were incorrectly charged to advertising expense in $2023.$ In addition, the $2023$ year$-$end inventory count failed to include $$47,000$ of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year$-$end inventory count was correct. The amounts of the errors are deemed to be material.

Required:

Determine the effect of the errors on retained earnings at January $1,2024.($Ignore income taxes.$)$

Prepare a journal entry to correct the errors.

Complete this question by entering your answers in the tabs below.

Prepare a journal entry to correct the errors.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the entry to correct the errors.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,]]$