A Company Makes Two Errors in the Physical Count of Inventory

A company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Overstated } \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Overstaed } \\\hline\end{array}$$ .
C)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$ .