Assume that in year 1, the ending merchandise inventory is overstates by $30,000. If this is the only error in Years 1 and 2, fill in the items below, indicating which items will be understated, overstated, or correctly stated for Years 1 and 2.
| Item | Year 1 | Year 2 |
| Ending Inventory | ||
| Beginning Inventory | ||
| Cost of Goods Sold |
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