Exhibit 23-6 Nora Company Has a Fiscal Year Ending on December

Multiple Choice

Exhibit 23-6 Nora Company has a fiscal year ending on December 31.Its financial statements for the years ended December 31, 2010 and 2011, contained the following errors:
$\begin{array}{lrr}&2010&2011\\\text { Ending inventory } & \$ 9,000 \text { understated } & \$ 15,000 \text { overstated } \\\text { Bad debt expense } & 2,000 \text { overstated } & 1,000 \text { understated }\end{array}$

- Assume no correcting entries have been made.
Refer to Exhibit 23-6.By how much was Nora's 2011 net income overstated or understated?

A) $23, 000 understated
B) $14, 000 overstated
C) $ 7, 000 understated
D) $25, 000 overstated