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the drop downs are :- understated, no effect and overstated

Sheffield Hardware Limited reported the following amounts for its cost of goods sold and Inventory: 2021 2020 Cost of goods sold $169,500 $155,100 Ending inventory 36,800 30,400 Sheffield made two errors in 2020. It recorded a $4,000 inventory purchase in transit at the end of 2020 that was shipped FOB destination and included this amount in ending inventory. Also during the year-end inventory count, staff forgot to count $5,000 of ending inventory that was on hand. No one discovered these errors in 2020. (a) Your answer has been saved. See score details after the due date. Calculate the correct ending inventory and cost of goods sold amounts for each year. 2021 2020 Ending inventory $ 41800 $ 31400 Cost of goods sold $ 169500 $ 150100 e Textbook and Media Attempts: 1 of 1 used (b) Describe the impact of the error on (1) cost of goods sold, (2) income before income tax, (3) assets, (4) liabilities, and (5) total shareholders' equity for each of the two years. 2021 2020 (1) 1) Cost of goods sold $ $ Income (2) before income tax $ $ . (3) Assets $ $ (4) Liabilities $ $ Total (5) shareholders' equity $ $ S