On december 15 2019 horcrux company accepted delivery of merchandise that it purchased on credit. As of December 31, 2019 the company had neither recorded the transaction nor included the merchandise in its ending inventory amount because the seller's invoice had not been received. The effect of this omission on its balance sheet as December 31, 3029 (end of the period) was that

a. net income was the only item affected by omission

b. assets and stockholders equity were understated but liabilities were correct

c. inventory and accounts payable were understated but net income was correct

d. inventory and net income were overstated but liabilites were correct