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P6.8A) (LO 4, 5) The records of Atlas Ltd, show the following data for the years ended July 2019 2020 $320,000 220,000 64,000 $300,000 209,000 64,000 24,000 40,000 9,000 19,000 2021 Statement of income: Sales $340,000 Cost of goods sold 233,000 Operating expenses 68,000 Statement of financial position: Inventory 40,000 Accounts payable 21,000 While preparing for the year end on July 31, 2020, the following errors, reflected in the data above, occurred: 1. When counting the year-end inventory, staff members counted items costing $5,000 twice. The company's accountants included this overstatement in the 2020 year-end Inventory account. Staff counted the inventory correctly on July 31, 2021. 2. Atlas purchased $15,000 of goods from a supplier on July 30, 2020, with shipping terms FOB ship- ping point. The company did not receive the goods until August 4, 2020, at which time the accoun tant recorded the purchase. Instructions 1. Assume that, just before recording the closing entries for the 2020 year end, you discovered the two errors described above. Provide a journal entry to correct each error. b. For each of the three years, prepare both incorrect and corrected statements of income through to income before income tax. c. What is the combined (total) impact of these errors on retained earnings (ignoring any income tax effects) for the three years before correction? After correction? d. Calculate both the incorrect and corrected inventory turnover ratios for 2021 and 2020

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