For each of the following independent situations, fill in the blanks to indicate the effect of the error on each of the various financial statement items. Indicate an understatement (U), an overstatement (O), or no effect (NE). Assume that each of the companies uses a periodic inventory system.

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Balance Sheet Income Statement Retained Cost of Net Error Inventory Earnings Goods Sold Income 1. Goods in transit at yearend are not included in the physical count; they were shipped FOB shipping point. 2. One section of a warehouse is counted twice during the yearend count of inventory. 3. During the count at yearend, the inventory sheets for one of the stores of a discount retailer are lost.