Gamma uses the periodic inventory system and reported the following errors in its December 31, 2020, financial statements: Beginning Inventory $500 overstated Ending Inventory Purchases $500 overstated $1,000 overstated Assuming no correcting entries have been made and ignoring the effect of taxes, what impact do these errors have on Net Income for December 31, 2020? Overstated $1,000 Understated $2,000 Overstated $2,000 Understated $1,000