If a company understates its count of ending inventory in Year 1 and it reports inventory correctly in Year 2 which of the following is true? Multple Choice Conts of goods sold is understated ot the end of Year 1 The baiance of retahed earnings is cometet at the end of Year 2 The balance of retained eanings is oversated at the end or Yeat 1 Net income is corect in Yeat 2