Boulam Corp. overstated the cost of its ending inventory on 12/31/2023 by $100,000. Its cost of ending inventory was correctly stated in the subsequent year (at 12/31/2024). Part 1: As a result of the 2023 error, all else being equal, what will be the error's effect on the company's cost of goods sold, net income, inventory, and retained earnings balances at 12/31/2023? Cost of Goods Sold Net Income Inventory Retained Earnings Answer 1 Question 20 understated by $100,000 Answer 2 Question 20 overstated by $100,000 Answer 3 Question 20 overstated by $100,000 Answer 4 Question 20 overstated by $100,000 Part 2: As a result of the 2023 error, all else being equal, what will be the error's effect on the company's cost of goods sold, net income, inventory, and retained earnings balances at 12/31/2024? Cost of Goods Sold Net Income Inventory Retained Earnings Answer 5 Question 20 overstated by $100,000 Answer 6 Question 20 understated by $100,000 Answer 7 Question 20 no effect Answer 8 Question 20 no effect