In 2016, the controller of sytec corporation discovered that $42,000 of inventory purchases were incorrectly charged to advertising expense in 2015. in addition, the 2015 year-end inventory count failed to include $30,000 of company merchandise held on consignment by erin brothers. sytec uses a periodic inventory system. other than the omission of the merchandise on consignment, the year-end inventory count was correct. the amounts of the errors are deemed to be material. required: 1. determine the effect of the errors on retained earnings at january 1, 2016. explain your answer. (ignore income taxes.) 2. prepare a journal entry to correct the errors. 3. what other step(s) would be taken in connection with the correction of the errors?