d. cannot be classified on the balance sheet because physical substance. 5. An error in the physical counit of goods on hand at the end of the current period resulted in a $5,000 understatement of ending inventory. The effect of this error in the current period is to a. overstate cost of goods sold, b. understate cost of goods available for sale. c. overstate gross profit d. overstate net income. 6. Hunter Company purchased merchandise inventory with an invoice price of $8,000 and credit terms of 2/10, 1/30. What is the net cost of the goods if Hunter Company pays within the discount period? a. S4000 b. 57 840 c. $7.600 d. 57680 000