Question content area top

Part $1$

Ending inventory for the current accounting period is overstated by$$ $$2,700.$ What effect will this error have on Cost of Goods Sold and Net Income for the current accounting$$ period?

Question content area bottom

Part $1$

A$.$

Cost of Goods Sold

Net Income

Understated

Overstated

B$.$

Cost of Goods Sold

Net Income

Understated

Understated

C$.$

Cost of Goods Sold

Net Income

Overstated

Understated

D$.$

Cost of Goods Sold

Net Income

Overstated

Overstated