Entity D uses a periodic inventory system. It understated its beginning inventory in 2024 because certain goods warehoused at a remote location were not counted. The effect of this error on 2024's cost of goods sold (COGS) and net income (NI), respectively are: COGS overstated and NI understated COGS overstated and NI overstated COGS understated and NI understated COGS understated and NI overstated 24 3 points Entity E uses a perpetual inventory system. On October 10, Entity E (buyer) purchased merchandise from Entity F for $25,000, terms 2/10, net 30 . Unknown to Entity E, the merchandise cost Entity F$17,000. Entity E's entry to record this transaction is: 3 points All of the following are principles of sound credit management of accounts receivables except: establishing a required payment period and communicating it to customers. obtaining a credit report on new customers to check payment history. relaxing credit standards for new customers and offering "interest free" credit terms