A Lopony prepares month ancial statements. In lancar. It purchasedentory on account. The accountant recorded the transaction as an increase in Inventories and an increase in Retained Earnings. As a res which of the following is true regarding the January financial statements? Inventories were understated Accounts Receivable was overstated Accounts Payabile was understated Revere was understated Retained Earrings was understated. Expenses were understated