B Company uses a periodic inventory system. B Company. purchased inventory on April 30, 2020 with terms FOB shipping point and correctly included the inventory in its physical count on April 30. However, B company omitted recording this credit purchase of inventory until May 2, 2020. What effect will this error have on April 30, 2020 assets, liabilities, and retained earnings? Assets Liabilities Retained Earnings

a. No effect Understate Understate

b. No effect Overstate Understate

c. No effect Understate Overstate

d. Understate No effect Overstate