22-23 Practice Problem Set - Week 3 Context: The situation described below is reporting some financial data as part of their company statistic safekeeping. Your job is to analyze the following statements and report of the best solution based on the answer choices below. Only select one answer choice and report back to your team. A company recorded the $28,000 adjusting entry for the earning of rent received in advance by debiting assets and crediting expenses for $28,000. Net income is A. $28,000 understated. B. $28,000 overstated. C. $56,000 overstated. D. $56,000 understated. E. correctly stated. Nextly, A company recorded the $35,000 adjusting entry for the expiration of accrued wages payable by debiting revenues and crediting liabilities for $35,000. Total liabilities are A. $35,000 understated. B. $35,000 overstated. C. $70,000 overstated. D. $70,000 understated. E. correctly stated.