Correction of Errors in Prior Years
Goldfinch Inc $$2018 , \quad \$ 62,000 ; \quad 2019 , \quad \$ 63,000 ; \quad 2020 , \quad \$ 60,000$$

Correction of errors in prior years
Goldfinch Inc. reported net incomes for the last three years as follows: $$2018 , \quad \$ 62,000 ; \quad 2019 , \quad \$ 63,000 ; \quad 2020 , \quad \$ 60,000$$ In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made: $\begin{array}{lrrr} & 2018 & 2019 & 2020 \\\text { Overstatement of ending inventory.................................................................. } & 7,000 & 8,500 & 4,000 \\\text { Understatement of accrued advertising expense ............................................... }& 1,100 & 2,000 & 1,200 \\\end{array}$ Instructions
a) Calculate corrected net incomes for 2018, 2019, and 2020.
b) Prepare the entry required in 2021 to correct the books. Ignore income taxes.
Show any calculations.