The September 30, 2014, physical inventory of Pollack Corporation appropriately included $6,300 of merchandise purchased on account that was not recorded in purchases until October 2014 . What effect will this error have on September 30, 2014, assets, liabilities, retained earnings, and earnings for the year then ended, respectively?
a. Understate; no effect; overstate; overstate
b. No effect; overstate; understate; understate
c. No effect; understate; overstate; overstate
d. No effect; understate; understate; overstate
C
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