The accountant for Lee Company made the following errors related to merchandise inventory in 2020: 1. The beginning inventory for 2020 was overstated by $750 due to an error in the physical count. 2. A $1,300 purchase of merchandise on credit was not recorded and was not included in the ending inventory. Assuming a periodic inventory system, Lee Company's 2020 cost of goods sold will be a. understated by $550. b. understated by $2,050. c. overstated by $2,050. d. overstated by $750.

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