When Yui worked out his profit for the year, the following mistakes came to light. 1. The purchase of a new motor vehicle for $\$3200$ was entered in motor expenses. 2. The purchases account was overstated by $\$500$. What effect did correcting these mistakes have on the profit for the year (ignore depreciation)?
- AIt decreased by $\$2700$.
- BIt decreased by $\$3700$.
- CIt increased by $\$2700$.
- DIt increased by $\$3700$.