The Accountant for Shelley Company Made the Following Errors Related $\$ 1,200$

The accountant for Shelley Company made the following errors related to purchases of merchandise and ending inventory in 2010: A $\$ 1,200$ purchase of merchandise on credit was not recorded or included in ending inventory.
A $\$ 1,180$ purchase of merchandise on credit was recorded, but it was inadvertently omitted from the ench-of-year physical inventory count. Assuming a periodic inventory system, Shelley Company's 2010 net income will be

A) understated by $1, 180
B) understated by $2, 380
C) overstated by $1, 200
D) overstated by $1, 180