The accountant for the Hilga Company recorded a purchase of merchandise on credit for the current year, but the merchandise was shipped FOB destination and did not arrive until after current year-end. Assuming a periodic inventory system, how would assets, liabilities, and retained earnings be affected on the year-end balance sheet? Assets No effect Liabilities Understated Retained Earnings I. Understated II. Understated Understated Understated III. No effect Overstated Overstated IV. No effect Overstated Understated B = 2 OIV