99. The following errors were made in 20x3: an understatement of purchases of $500 and an understatement of ending inventory of $500. The net effect on the 20x3 ending amount of retained earnings is: A. $1,000 understatement. B. $1,000 overstatement. C. No effect, the errors offset. D. No effect; the errors affect income, not retained earnings. E. $500 understatement