Path Home r5 Homework Saved poed eBook In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $12.500. Determine how this error effects each of the following. (a) Year 1 cost of goods sold. Overstates Year 1 cost of goods sold. Understates Year 1 cost of goods sold. None of the above. Prin References (b) Year 1 net income. Understates Year 1 net income Overstates Year 1 net income None of the above. (c) Year 2 cost of goods sold. Understates Year 2 cost of goods sold. Overstates Year 2 cost of goods sold. Mans of the an Ma < Prev 10 of 10 Next