The Blotto Company made the following two errors in counting ending inventory:

Understated 12/31/12 inventory by $3000

Overstated 12/31/13 inventory by $2000

The combination of these two errors will cause:

Select one:

a.

12/31/13 Retained Earnings to be understated by $2,000

b.

2013 Cost of Goods Sold to be overstated by $3,000

c.

2014 Beginning Inventory to be understated by $1,000

d.

2014 Cost of Goods Sold to be overstated by $2,000

e.

2013 Net Income to be overstated by $1,000