Sportscar Warehouse operates in a province with a $6\%$ sales tax. For convenience, Sportscar Warehouse credits Sales Revenue for the total amount $($selling price plus sales tax$)$ collected from each customer. If Sportscar Warehouse fails to make an adjustment for sales taxes, which of the following will be true?

A$.$ Net income will be understated, and liabilities will be understated.

B$.$ Net income will be overstated, and liabilities will be understated.

C$.$ Net income will be overstated, and liabilities will be overstated.

D$.$ Net income will be understated, and liabilities will be overstated.