For each of the described errors, indicate the effect of the error on the Company's financial statements. Assume all sales and purchases are on credit and the company uses the periodic inventory system. Use the following codes: O = amount is Overstated; U = amount is Understated; NE = No Effect. EXAMPLE: Inventory owned by the company located in a rented offsite warehouse was excluded from the year end physical inventory count. 2.1 Inventory purchased from a supplier shipped FOB Destination and in transit as of year end was recorded as a purchase but excluded from the year end inventory count. 2.2 Inventory held on consignment was included in the year end physical inventory count and recorded as a purchase prior to year end. 2.3 Inventory shipped to a customer FOB Shipping Point in transit at year end was not recorded as a sale and was included in ending inventory in the general ledger. 2.4 Inventory shipped to a customer was appropriately excluded from the year end inventory count but the sale was not recorded as of year end. Accounts Receivable Inventory Accounts Payable Sales Cost of Good Sold Retained Earnings NE U LIN NE NE 0 U