The Ending Merchandise Inventory for the Current Accounting Period Is

Multiple Choice

The ending merchandise inventory for the current accounting period is overstated by $3,500.What will be the effect of this error?

A) The net income for the current accounting period will be overstated by $3,500.
B) The cost of goods sold for the current accounting period will be overstated by $3,500.
C) The ending merchandise inventory for the next accounting period will be overstated by $3,500.
D) The cost of goods sold for the next accounting period will be understated by $3,500.