the inventory shrinkage at the end of the year is overstated by $7,500, the error will cause an:

A. . understatement of net income for the year by $7,500 B. . understatement of cost of merchandise sold for the year by $7,500 C. . overstatement of merchandise inventory for the year by $7,500 D. . overstatement of gross profit for the year by $7,500