The accountant for the Daneen Company made the following errors related to purchases of merchandise and ending inventory in $2020$:

$1.$ A $$3,100$ purchase of merchandise on credit early in $2019$ was recorded and included in ending inventory at December $31,2020.$

$2.$ A $$2,750$ purchase of merchandise on credit in $2018$ was recorded, but it was not included in the end$-$of$-$year physical inventory count.

Assuming a periodic inventory system, Daneen Company's $2020$ net income will be

overstated by $$5,850.$

overstated by $$350.$

understated by $$5,850.$

understated by $$350.$