Three Cases of Inventory and Purchase Errors made in 2019 Case 1. Ending inventory overstated, but purchases were recorded correctly. Case 2. Ending inventory correctly stated, but some purchases & related accounts payable not recorded Case 3. Both ending inventory and purchases & related accounts payable were understated. Part One. For each case use the fundamental accounting equation to illustrate the effect of the error(s) in 2019. Use the letters U, O and OK or NE for understate, Overstate, Ok or No Effect, respectively. Case 1 Case 2 Case 3 A OE Part Two. Explain CLEARLY using the fundamental accounting equation, how the error in Case 1, self corrects in 2020. A L OE Case 1