The ending merchandise Inventory for the current accounting period is understated by $2, 700. What effect will this error have on Cost of Goods Sold and Net Income? A. Cost of Goods sold-Understated, Net Income-Understated B. Cost of Goods sold-overstated. Net Income-overstated C. Cost of Goods Sold-Understated, Net Income-Overstated D. Cost of Goods Sold-Overstated, Net Income-Understated The ending merchandise inventory for the current accounting period is overstated by $3, 500. What will be the effect of this error? A. Net income from the current accounting period will be overstated by $3, 500. B. Costs of goods sold for the current accounting period will be overstated by $3, 500. C. Ending merchandise inventory for the next accounting period will be overstated by $3, 500. D. Cost of goods sold for the next accounting period will be understated by $3, 500. Dallas Company reported cost of goods sold for Year 1 and Year 2 as follows: Dallas Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000. Given this information, the correct cost of goods sold figure for Year 2 would be: A. $220,000. B. $205,000. C. $339,000. D. $360,000. E. $345,000