022/0:32 1x ook erences Knowledge Check 01 Colman Company reports ending inventory in year 1 of $25,000 Instead of the correct amount of $20,000. The effects of this error include O Year 1 ending inventory is understated and year 1 cost of goods sold is overstated Year 1 ending inventory is overstated and year 1 cost of goods sold is understated Year 1 ending inventory is understated and year 1 cost of goods sold is understated Year 1 ending inventory is overstated and year 1 cost of goods sold is overstated