The December 31, 20X1, physical inventory of Snowville Company appropriately included $6,300 of merchandise purchased on account that was not recorded in purchases until January 20X2. What effect will this error have on December 31, 20X1, assets, liabilities, and retained earnings, and net income for 20X1? Note: Snowville uses a periodic inventory system. Assets - No effect; liabilities - overstate; retained earnings - understate; net income - understate Assets - No effect; liabilities - understate; retained earnings - understate; net income - overstate Assets - Understate; liabilities - no effect; retained earnings - overstate; net income - overstate Assets - No effect; liabilities - understate; retained earnings - overstate; net income - overstate