When the records of Debra Hanson Corporation were reviewed at the close of 2021, the following errors were discovered. For each item, indicate by a check mark in the appropriate column whether the error resulted in an overstatement, an understatement, or had no effect on net income for the years 2020 and 2021.

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2020 2021 Over- Under- Under- Over- No No Effect Effect Item statement statement statement statement 1. Failure to record amortization of patent in 2021. 2. Failure to record the correct amount of ending 2020 inventory. The amount was understated because of an error in calculation. 3. Failure to record merchandise purchased in 2020. Merchandise was also omitted from ending inventory in 2020 but was not yet sold. 2020 2021 Under- statement Over- statement Under- statement Over- statement No Effect No Effect Item 4. Failure to record accrued interest on notes payable in 2020; that amount was recorded when paid in 2021. 5. Failure to reflect supplies on hand on balance sheet at end of 2020.