Tang, Inc. sells collectible jewelry both at its own stores and through consignment arrangements with distributors. On December 31, 2019, during Tang's annual inventory count, an inexperienced new staff member forgot to include Tang's inventory under consignment in the warehouse of the distributors in the value of the ending inventory. The value of the inventory under consignment is $350,000. Which of the following is correct regarding the impact of this error on Tang's income statement and statement of financial position on December 31, 2019?

a. Cost of goods sold is understated by $350,000

b. Ending inventory is overstated by $350,000.

c. retained earnings is understated by $350,000.

d. The financial statements are correctly stated.