12. TTT, Inc.sells collectible jewelry on consignment from various manufacturers. Additionally, TTT sellsits own line of specialty jewelry manufactured in-house. On December 31, 2019, during TTT, Inc 'sannual inventory count, an inexperienced new staff member included in TTT’s ending inventory€350,000 worth of inventory held on consignment from MMM Associates. Which of the following iscorrect regarding the impact of this error on TTT’s income statement and statement of financial positionat December 31, 2019?
(A) Ending inventory is understated by €350,000.
(B) Cost of goods sold is overstated by €350,000.
(C)Retained earnings is overstated by €350,000.
(D) The financial statements are correctly stated.