The ending inventory for Oak Co. was erroneously written down, causing an understatement of $6,500 at the end of 2016.
Required
Was each of the following amounts overstated, understated, or not affected by the error?

ending inventory for Oak Co. was erroneously written down,">

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Item No Year Amount 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 Beginning inventory Purchases Goods available for sale Cost of goods sold Gross margin Net income Beginning inventory Purchases Goods available for sale Cost of goods sold Gross margin Net income 10 12