27. The Jotto Company made the following two errors in counting ending inventory: Understated 12/31/12 inventory by $2,000 Understated 12/31/12 inventory by $1,000 The combination of these two errors will cause: 12/31/13 Retained Earnings to be understated by $3,000 a. b. c. d. e. 2013 Cost of Goods Sold to be overstated by $3,000 2014 Beginning Inventory to be overstated by S1,000 2014 Cost of Goods Sold to be overstated by $1,000 2013 Net Income to be overstated by $1,000 28. If you assume the same information from the item above, the combination of the two errors will also cause: a. 12/31/13 Retained Earning to be understated S1,000 b. 12/31/14 Retained Earnings to be understated $1,000 c. 2014 Gross Margin to be correct d. 2014 Gross Margin to be understated $1,000 e. 2014 Net Income to be correct