Problem INVENTORY ERRORS Exercise 6: Effects of Errors in the Ending Inventory over a Two Year Cycle. Complete the following table: O- overstated, U understated, NE no effect Retained Cost of Goods G Error in Inventory Assets Liabilities earnings Gross Net Income Profit Sold | El understated A Year 1 B Bl understated Year 2 C El overstated Year 1 D BI overstated Year 2