The Accountant for Ella Company Made the Following Errors Related

The accountant for Ella Company made the following errors related to the inventory in 2016:
1) The beginning inventory for 2016 was understated by $1,350 due to an error in the physical count.
2) A $1,500 purchase of merchandise in transit was not recorded as a purchase and was not included in ending inventory.
Assuming a periodic inventory system, Ella Company's 2016 net income will be

A) understated by $150.
B) overstated by $1,350.
C) overstated by $1,500.
D) overstated by $150.