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Merchandise inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? Oa. Net

Merchandise inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? Oa. Net income is understated. Ob. Owner's equity is overstated. Oc. Gross profit is understated. Od. Cost of merchandise sold is overstated.

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