5) A company takes a physical count of inventory at the end of 2010 and finds that ending inventory is understated by $10,000. Would this error cause cost of goods sold to be overstated or understated in 2010? In year 2011? If so, by how much? 6) Where is the amount of merchandise inventory disclosed in the financial statements? 7) Under a perpetual inventory system, acquisition of merchandise for resale is debited to the: a Cost of Goods Sold account b. Purchases account C. Supplies account d. Merchandise Inventory account