Mertens Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31700, and its ending inventory on December 31 was understated by $16,300. In addition, a purchase of merchandise costing $20,700 was incorrectly recorded as a $2,070 purchase. None of these errors were discovered until the next year. As a result, taxable income for this year was: Multiple Choice O Overstated by $34,030 Overstated by $3,230 Oo oo Understated by $50.330 ) Understated by $3.230