$($CH$7-$Q$2)$: Inventory error $(3$ points total$)$

New York Manufacturing Company hired a new store manager in September $2023.$ The manager determined the ending

inventory on December $31,2023,$ to be $$53,000.$ In March $2024,$ the internal auditor discovered that the December $31,2023$

ending inventory should have been $$50,000.$ The December $31,2024,$ inventory was correct.

Complete the following table to show the effects of the inventory error on the six items listed. Give the amount of the

discrepancy and indicate whether it was overstated $($O$),$ understated $($U$),$ or had no effect $($N$).$