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A company uses the periodic inventory method. An error in the physical count of inventory...

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Accounting

A company uses the periodic inventory method. An error in the physical count of inventory at the end of a period resulted in an understatement of the ending inventory. The effect of this error in the current period is that gross profit is (i) _________________ and retained earnings is (ii) ___________________. Group of answer choices (i) overstated; (ii) understated (i) overstated; (ii) overstated (i) understated; (ii) overstated (i) understated; (ii) understated (i) understated; (ii) neither overstated nor understated

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