MATCH... For each of the following independent situations, fill in the blanks to indicate the effect of the error on ea

of the various financial statement items. Assume that each of the companies uses a periodic inventory system. Indici

(A) an understatement

(B) an overstatement or

(C) no effect, correct

please correct nunber 40!!!

38. Inventory records for SC Company revealed the following: NumberUnit Date Transaction of UnitsCost Mar. 1 Beginning inventory 100 $38.00 Mar. 3 Purchase 600 $39.00 Mar. 23 Purchase 300 $40.00 SC sold 990 units of inventory during the month. Ending inventory assuming Weighted Average would be $_392 Use the following to answer questions 39-40 MATCH... For each of the following independent situations, fill in the blanks to indicate the effect of the error on each of the various financial statement items. Assume that each of the companies uses a periodic inventory system. Indicate: (A) an understatement (B) an overstatement or (C) no effect, correct Balance Sheet Ending Retained Error Inventory Eamings 39. Understated El in year 1, affect on items in year 1.a. a 40. Understated El in year 1, affect on items in year 2 a. [b. Income Statement Cost of Net Income Goods Sold c. c. 0 dy