Indicate in each of the spaces provided, the effect of the described errors on the various elements of our company's financial statements Use the following codes: O = amount is overstated: U amount is understated: NE = no effect. Assume a periodic inventory system, and that all purchases and sales are on credit. Cost of Goods Sold = Beginning Inventory + Net Purchases Ending Inventory As of December 31 of this year, Accounts Receivable Invent EXAMPLE: Goods kept by us in a rented warehouse were excluded from our inventory NE Goods in transit shipped "f o b destination" to us by a supplier were recorded by us asa purchase, but were not included in our ending inventory NE Indicate in each of the spaces provided, the effect of the described errors on the various elements of our company's financial statements Use the following codes: O = amount is overstated: U amount is understated: NE = no effect. Assume a periodic inventory system, and that all purchases and sales are on credit. Cost of Goods Sold = Beginning Inventory + Net Purchases Ending Inventory As of December 31 of this year, Accounts Receivable Invent EXAMPLE: Goods kept by us in a rented warehouse were excluded from our inventory NE Goods in transit shipped "f o b destination" to us by a supplier were recorded by us asa purchase, but were not included in our ending inventory NE