7. An entity's financial statements include a liability that is overstated by CU 100,000 at year-end. This has built up over five years due to an overstated expense charged to the income Statement of CU20,000 per year. What entry would appear if we were using the balance sheet method? (1 Point) O DR. Balance sheet CU20,000; CR. Income statement C120,000 O DR. Balance sheet CU 100.000: CR. Income statement CU 100,000 DR. Income statement C120.000: CR. Balance sheet CU20,000. O DR. Income statement CU 100,000; CR. Balance sheet CU 100.000 8. Fill in the blanks: Where ROMM due to error is high, then inherent risk is most likely to be and the control risk is most likely to be (1 Point) High and high O High and significant Significant and high Significant and significant