If the inventory at the end of the year is understated by \(\$ 7,500\), the error will cause an:

A. understatement of cost of merchandise sold for the year by \(\$ 7,500\).

B. overstatement of gross profit for the year by \(\$ 7,500\).

C. overstatement of merchandise inventory for the year by \(\$ 7,500\).

D. understatement of net income for the year by \(\$ 7,500\).