348) ABC's correct ending balance for the inventory account at the end of 2018 should be S5,000, but the company incorrectly stated it as $3,000. In 2019, ABC correctly recorded its ending balance of the inventory account. Which one of the following is true? A) Gross profit is overstated by S2,000 in 2018. B) Gross profit is overstated by S2,000 in 2019. C) Cost of goods sold is understated by $2,000 in 2018. D) Retained eanings are understated by $2,000 in 2019. 349) After evaluating the lower of cost and net realizable value of inventory, the accountant prepares a year-end adjustment. That adjustment would: A) Increase the company's total assets. B) Decrease the company's cost of goods sold. C) Increase the company's inventory D) Reduce the company's stockholders equity