A company using a perpetual inventory system 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 equity at year end and net income for the year? Assets Liabilities Equity Net Income Understate Understate No effect No effect. No effect Overstate Understate Understate. No effect Understate Overstate Overstate. Understate No effect Understate Understate