Hamid owns a grocery store. He purchased a motor vehicle, $2000, and fuel, $50. These two amounts were both entered in the purchases account by mistake. What impact did this error have on the income statement for the year?
- AGross profit overstated $2000$; motor vehicle expenses overstated $2050$
- BGross profit overstated $2050$; motor vehicle expenses overstated $50$
- CGross profit understated $2000$; motor vehicle expenses understated $2050$
- DGross profit understated $2050$; motor vehicle expenses understated $50$