Question: Incorrect Question 7 0/1.67 pts Sparky, Inc. follows a calendar-year end. Its financial statements for the years 20x1 and 20x2 contained errors as follows: Ending

Incorrect Question 7 0/1.67 pts Sparky, Inc. follows a calendar-year end.

Incorrect Question 7 0/1.67 pts Sparky, Inc. follows a calendar-year end. Its financial statements for the years 20x1 and 20x2 contained errors as follows: Ending Inventory for 20x1 was understated by $18,000 Ending Inventory for 20x2 was overstated by $33,000 No correcting entries were made at December 31, 20x2. Determine the following: a. Indicate the effect on 20x2 Net Income (ignore taxes. Indicate O for Overstated; U for Understated; or NE for No Error. If your answer is overstated by $4,000, record your answer as 04000.) b. Indicate the effect on 20x2 Ending Retained Earnings (enter your answer same as above). Effect on 20x2 Net Income Effect on End Retained Earnings at Dec 31, 20x2 $ 51000 $ 33000

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