When the records of Debra Hanson Corporation were reviewed at the close of 2026, 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 2025 and 2026.

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Item 1. Failure to record amortiza- tion of patent in 2026. 2. Failure to record the cor- rect amount of ending 2025 inventory. The amount was understated because of an error in calculation. 3. Failure to record merchan- dise purchased in 2025. Merchandise was also omit- ted from ending inventory in 2025 but was not yet sold. 4. Failure to record accrued interest on notes payable in 2025; that amount was recorded when paid in 2026. 5. Failure to record supplies on hand on balance sheet at end of 2025. Overstatement 2025 Understatement No Effect Overstatement 2026 Understatement No Effect