Question: TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions

TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions a. Calculate the correct cost of goods sold and ending inventory for each year. b. Describe the impact of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021. c. Explain why it is important that Glacier Fishing Gear correct these errors as soon as they are discovered. E6.9 (LO 4) AN Marrakesh Company reported the following income statement data for the years ended December 31: 2020 Sales Cost of goods sold Gross profit 2021 $500,000 410,000 $ 90,000 $500,000 410,000 $ 90,000 The inventories at January 1, 2020, and December 31, 2021, are correct. However, the ending inventory at December 31, 2020, was understated by $20,000. Instructions a. Prepare the correct income statement up to gross profit for the two years. b. What is the combined effect of the inventory error on total gross profit for the two years

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