Senger Ltd uses a periodic inventory system. Beginning inventory on January $1,2022$ was overstated by $$36,000,$ and its ending inventory on December $31,2022$ was understated by $$12,000.$ Additionally, a purchase of inventory costing $$34,000$ was incorrectly recorded as $$3,400.$ These errors were not discovered until $2023.$

Question $11$ of $20$

Assuming the errors are not discovered until $2024,$ is Senger's cost of goods sold in $2022$ overstated or understated? $[2$ points$]$

A Overstated

B Understated