Question 2: (All sales and purchases are on credit.) Indicate in each of the spaces provided the effect of the described errors on the various elements of a company's financial statements. Use the following codes: O = amount is overstated; U = amount is understated; NE = no effect. Assume a periodic inventory system. Accounts Accounts Inventory Sales Costs of Receivable Payble Goods Sold _____________________________________________________________________ 1. Goods in transit shipped "f.o.b. destination" by supplier were recorded as a purchase but were excluded from ending inventory. ________________________________________________________________________ 2. Goods held on consignment were included in inventory count and recorded as a purchase. ________________________________________________________________________ 3. Goods in transit shipped "f.o.b. shipping point" were not recorded as a sale and were included in ending inventory. ________________________________________________________________________ 4. Goods were shipped and appropriately excluded from ending inventory but sale was not recorded.