The 20x4 Net Income of MXC Inc

The 20x4 net income of MXC Inc.was understated by $3,000.This was due to three separate errors.One error was the overstatement of purchases by $2,000; the second error was the understatement of depreciation expense by $1,000.Which of the following errors, in combination with the other two, would cause the $3,000 understatement of income?

A) Prepaid expenses was overstated by $2,000
B) Revenue earned but not yet collected of $2,000 was not properly recognized
C) Interest expense was understated by $2,000
D) These two errors alone caused the misstatement