5. An entity uses a periodic inventory system and neglected to record a purchase of merchandise on account at year-end. This merchandise was omitted from the year-end physical count. How will these errors affect assets, liabilities, and shareholders' equity at year-end and net earnings for the year? Assets liabilities equity net earnings a. u nderstate u nderstate no effects no effects b. Understate no effects understate understate c. No effects Understate overstate overstate d. No effects overstate Understate u nderstate