Discounts received amount to $10 500 and discounts allowed to 13 000. The discounts received have been

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Discounts received amount to $10 500 and discounts allowed to 13 000. The discounts received have been debited, and the discounts allowed have been credited in the Profit and Loss Account. What has been the effect of these errors on net profit? 

A. Understated by $2500 

B Overstated by $2500 

C. Understated by $5000 

D. Overstated by $5000

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