A company uses the periodic inventory method. If beginning inventory is overstated by $10,000 because the prior's year's ending inventory was overstated by $10,000. The company's ending inventory for this period is correct. The effect of this error in the current period is that (i) cost of goods sold is and (ii) net Income is (i) Understated and (ii) Overstated O (1) Understated and (ii) Understated O (i) Overstated and (ii) Understated O None of these O (i) Overstated and (ii) Overstated