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 for the current accounting period will be overstated by $3,500.

B.

Cost of goods sold for the next accounting period will be understated 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 current accounting period will be overstated by $3,500.