A customer returned merchandise that he had paid for within a discount period for credit. The entry was recorded with a debit to sales returns an allowances and a credit to accounts receivable for the net amount. This error would cause

A the periods end assets to be understated

B the periods end liabilities to be understated

C the periods net income to be understated

D None of the above

The freight paid on goods purchased FOB shipping point was debited to the Freight Expense Account. This error would cause

A the periods end assets to be understated

B the periods end liablitties to be understated

C the periods net income to be overstated

D None of the above