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 overstated COGS overstated and NI understated COGS understated and NI overstated COGS understated and NI understated