The Accountant for the Shelley Company Made the Following Errors $\$ 2,100$

The accountant for the Shelley Company made the following errors related to purchases of merchandise and ending inventory in 2010: 1. $\$ 2,100$ purchase of merchandise on credit early in 2011 was recorded and included in encling inventory at December 31,2010
2. purchase of merchandise on credit in 2010 was recorded, but it was not inclucled in the end-of-year plysical inventony count Assuming a periodic inventory system, Shelley Company's 2010 net income will be

A) understated by $550
B) understated by $3, 650
C) overstated by $3, 650
D) overstated by $550