A companys correct ending balance for the inventory account at the end of Year 1 should be $57,000, but the company incorrectly reported it as $ 43,000 . In Year 2 the company correctly recorded its ending balance of the inventory account . Which one of the following is true ?

- Gross profit is overstated by in Year 1 .

- Retained earnings is understated by $ 14,000 in Year 2 .

- Cost of goods sold is understated by $ 14,000 in Year 1 .

-Gross profit is overstated by $14,000 in year 2.

A company's correct ending balance for the inventory account at the end of Year 1 should be 557,000, but the company incorrectly reported it as $43.000. In Year 2. the company correctly recorded its ending balance of the inventory account. Which one of the following is true? Gross profit is overstated by $14,000 in Year 1. Retained earnings is understated by 514,000 in Year 2. Cost of goods sold is understated by $14,000 in Year 1. Gross profit is overstated by $14,000 in Year 2