At December 31, 2016, Stevenson Company overstated ending by $36,000. How does this error affect cost of goods sold and net income for 2016? A. Overstated both cost of goods sold and net income B. Overstated cost of goods sold and understates net income C. Understates cost of goods sold and overstates net income D. Leaves both cost of goods sold and net income correct because the errors cancel each other