Tennis Corporation inadvertently overstated Ending Inventory as of December $31,2022.$What is the impact of this error on the December $31,2023$ financial statements $($the next fiscal year$)?$

Question $2$ options:

a$)$

COGS will be Understated and Retained Earnings will be Overstated

b$)$

COGS will be Overstated and Retained Earnings will be Understated.

c$)$

COGS will be Overstated and Retained Earnings will be Overstated.

d$)$

COGS will be Understated and Retained Earnings will be Understated.$$