Waters Hardware Reported Cost of the Goods Sold as Follows

Essay

Waters Hardware reported cost of the goods sold as follows. Waters made two errors: (1) 2017 ending inventory was overstated $5,000, and (2) 2018 ending inventory was understated $8,000
Instructions
(a) Compute the correct cost of goods sold for each year.
(b) What correcting entry would Waters make for error (2)?