At the beginning of $2019,$ Hyperion Enterprises received a three$-$year zero$-$interest$-$bearing $$10,000$ trade note. The market rate for

equivalent notes was $9\%$ at that time. Hyperion reported this note as a $$10,000$ trade note receivable on its $2019$ year$-$end statement

of financial position and $$10,000$ as sales revenue for $2019.$ What would be the result of this accounting on the company's net

earnings for $2019,2020,2021$ and its retained earnings at the end of $2021,$ respectively?

Overstate, understate, understate, zero.

Overstate, understate, understate, understate.

Overstate, overstate, overstate, overstate.

Overstate, overstate, understate, zero.