(All sales and purchases are on credit.) Indicate in each of the spaces provided the effect of the described inventory errors on ending inventory, cost of goods sold, net income, retained earnings, current assets, current liabilities, and working capital. Indicate if the element is overstated, understated, or no effect. HINT: Think through these to determine if ending inventory or purchases are understated or overstated. Also, it may be helpful, in some cases, to create numbers and test the outcomes. Refer to the Week \#1 Learning Packet for inventory errors with the periodic inventory formula to test various scenarios. 1. Goods in transit shipped "f.o.b. destination" by a supplier (to us) were recorded as a purchase but were excluded from ending inventory. The inventory had already arrived. 2. Goods held on consignment were included in the inventory count and recorded as a purchase. 3. Goods in transit shipped "f.o.b. shipping point" (to a buyer) were recorded as a sale and were included in ending inventory