Use the receipts to calculate the average cost per ounce of oil. Enter the correct amount into the highlighted fields belon Create a journal entry for the cash purchase of 48oz of various oils used to create finished product for $120. You try it! Now create a journal entry for 48 oz of various oils for $120 purchased on credit. \begin{tabular}{l|c|c} \hline & \multicolumn{2}{|c}{2020} \\ \hline & Incorrect & Correct \\ \hline Sales & $200,000 & $200,000 \\ \hline Beginning Inventory & $11,000 & $11,000 \\ \hline Cost of goods purchased (COGP) & $135,000 & $135,000 \\ \hline Cost of goods available (COGA) & $146,000 & $146,000 \\ \hline Ending Inventory & $20,000 & $16,000 \\ \hline Cost of goods sold (COGS) & $126,000 & $130,000 \\ \hline Gross Profit & $74,000 & $70,000 \\ \hline Operating expenses & $20,000 & $20,000 \\ \hline Net Income & $54,000 & $50,000 \\ \hline \end{tabular} For 2020 , the net income was Select the best answer below. A. Understated by $4,000 B. Understated by $16,000 C. Overstated by $4,000 D. Overstated by $20,000 For 2021 , the net income was Select the best answer below. A. Understated by $4,000 B. Understated by $16,000 C. Overstated by $4,000 D. Overstated by $20,000