A Company Using a Periodic Inventory System Neglected to Record

Multiple Choice

A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end.This merchandise was omitted from the year-end physical count.How will these errors affect inventory at year-end and cost of goods sold for the year? Cost of
Inventory Goods Sold

A) No effect Understate
B) Understate No effect
C) Understate Understate
D) No effect Overstate