On Saturday, June 30, BD Pool Supplies sold merchandise to E. Luang on account. The sales price was $7,900, and the cost of goods sold was $6,500. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:

• Overstated by $7,900.

• Overstated by $1,400.

• Overstated by $6,500.

• Not affected, but the net income for July is understated.