Manila Bread Company uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2016: Estimate the ending inventory as of December 31, 2016. In 2016, the internal auditors of Blooper Inc, discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2015 were in transit on December 31. The goods were recorded as a purchase in December of 2015 but were not included in the 2015 year-end inventory. Prepare the journal entry needed in 2016 to correct the error. Describe the impact on the 2015 financial statements of the error on the following accounts: Inventory Cost of goods sold Net income Retained earnings