N= no effect O= overstated U = understated

Over/Under: Alpha recorded a credit sale to one of its customers with terms FOB Shipping Point. As of year-end, the merchandise had not been received by the customer. However, it was counted and included in Alpha's ending inventory. Alpha uses the periodic inventory system. [Using UPPERCASE, enter an N, O, or U for assets, liabilities, and net income with no space in between letters (e.g., OUN).]