In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $11,000. Determine how this error effects each of the following. . Year 1 cost of goods sold. Year 1 net income. Year 2 cost of goods sold. Year 2 net income. No impact on cost of goods sold. Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold