Smile Inc. began business on January 1, 20XX. During the year, Smile purchased inventory for resale. Smile paid $50,000 in freight charges on these merchandise purchases. During 20XX, Smile sold all its inventory. The company paid $20,000 in freight on these sales. After the financial statements for 20XX were released, it was discovered that the $50.000 freight paid on merchandise purchases was inadvertently misclassified as freight paid on merchandise sales (freight-out). What is the effect (overstated, understated or no effect) and the dollar amount (S0 $20,000.550.000) on each account listed below? Account Effect $ Amount 3:21 PM Type here to search What is the effect (overstated, understated or no effect) and the dollar amount (50, $20,000, $50,000) on each account listed below? Account Effect $ Amount Cost of Goods Sold Gross Profit Operating Expenses Net Income