The following income statement was prepared for Rice Company for the year 2016:
RICE COMPANY
Income Statement
For the Year Ended December 31, 2016
Sales ............ $ 75,000
Cost of goods sold ....... (41,250)
Gross margin ......... 33,750
Operating expenses ...... (10,120)
Net income .......... $ 23,630
During the year-end audit, the following errors were discovered:
1. An $1,800 payment for repairs was erroneously charged to the Cost of Goods Sold account.
2. Sales to customers for $3,400 at December 31, 2016, were not recorded in the books for 2016.
Also, the $1,870 cost of goods sold was not recorded.
3. A mathematical error was made in determining ending inventory. Ending inventory was understated by $1,700.
Required
Determine the effect, if any, of each of the errors on the following items. Give the dollar amount of the effect and whether it would overstate (O), understate (U), or not affect (NA) the account. The effect on sales is recorded as an example.

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Error No. 1 Amount of Error Effect Sales, 2016 Ending inventory, December 31, 2016 Gross margin, 2016 Beginning inventory, January 1, 2017 Cost of goods sold, 2016 Net income, 2016 Retained earnings, December 31, 2016 Total assets, December 31, 2016 NA NA Error No.2 Amount of Error Effect Sales, 2016 Ending inventory, December 31, 2016 Gross margin, 2016 Beginning inventory, January 1, 2017 Cost of goods sold, 2016 Net income, 2016 Retained earnings, December 31, 2016 Total assets, December 31, 2016 $2,400 Error No.3 Amount of Error Effect Sales, 2016 Ending inventory, December 31, 2016 Gross margin, 2016 Beginning inventory, January 1, 2017 Cost of goods sold, 2016 Net income, 2016 Retained earnings, December 31, 2016 Total assets, December 31, 2016 NA NA