Question Completion Status: Morgan Company uses the periodic inventory system. If Morgan's ending inventory is understated due to an accounting error effect on net income and the ending balance of retained earnings? a. Net Income is overstated, and Retained Earnings is overstated Ob. Net Income is understated, and Retained Earnings is overstated OC. Net Income is overstated, and Retained Earnings is understated O d. Net Income is understated, and Retained Earnings is understated QUESTION 16 Which of the following costs will not affect cost of goods sold? O a. Freight charges incurred to bring inventory to the warehouse. O b.Inventory preparation costs. Oc. Inventory-related selling costs. O d. Inventory inspection costs. Save and Submit to save and submit. Click Save All Answers to save all answers