An entity uses periodic inventory system and neglected to record a purchase of merchandise on account at year end.  This merchandise was omitted from the year end physical count.  How would these errors affect the entity's Assets, Liabilities, Shareholders' Equity at year end and Net Income for the year?*   Asset - UNDERSTATE, Liabilities - UNDERSTATE, Shareholders' Equity - NO EFFECT, Net Income - NO EFFECT   Asset - UNDERSTATE, Liabilities - NO EFFECT, Shareholders' Equity - UNDERSTATE, Net Income - UNDERSTATE   Asset - NO EFFECT, Liabilities - OVERSTATE, Shareholders' Equity - UNDERSTATE, Net Income - UNDERSTATE   Asset - NO EFFECT, Liabilities - UNDERSTATE, Shareholders' Equity - OVERSTATE, Net Income - OVERSTATE

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