If beginning Merchandise Inventory is "Understated", what effect will it have on: Answer either "U" for understated or "O" for overstated Cost of Merchandise Sold _____________ Gross profit _________________ Net Income ________________

If Ending Merchandise Inventory is "Overstated", what effect will it have on: Write "U" for understated or "O" for overstated Cost of Merchandise Sold ______________ Gross profit _______________ Net Income _______________