The ending Merchandise Inventory for the current accounting period is understated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income for the current accounting period?
A)
Cost of Goods Sold Net Income
Understated Understated
B)
Cost of Goods Sold Net Income
Overstated Overstated
C)
Cost of Goods Sold Net Income
Understated Overstated
D)
Cost of Goods Sold Net Income
Overstated Understated
D
Business
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