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Smile Inc. began business on January 1,20XX. During the year, Smile purchased inventory for resale. Smile paid $50,000 in freight charges on these merchandise purchases. During 20XX. Smile sold all its inventory. The company paid $20,000 in freight on these sales. After the financial statements for 20X were released, it was discovered that the $50,000 freight paid on merchandise purchases was inadvertently misclassified as freight paid on merchandise sales (freight-out). What is the effect (overstated, understated or no effect) and the dollar amount ( $0, $20,000,$50,000 ) on each account listed below? Cost of Goods Sold Gross Profit Operating Expenses Net Income