Bennett Company's accountant made the following errors related to merchandise inventory in 2016:

1.	The beginning inventory for 2016 was overstated by $1,900 due to an error in the physical count.
2.	A $1,150 purchase of merchandise on credit was not recorded, but the items were included in the ending inventory.

Assuming a periodic inventory system, Bennett Company's 2016 cost of goods sold will be

overstated by $1,900.

understated by $750.

overstated by $750.

understated by $1,900.