Accrued salaries payable of $10,000 were not recorded at December 31, 2018 and expensed in 2019.. Office supplies on hand of $9,000 at December 31, 2019 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause

Select one:

a. 2019 net income to be understated $19,000 and December 31, 2019 retained earnings to be understated $9,000.

b. 2019 net income and December 31, 2019 retained earnings to be understated $19,000 each.

c. 2018 net income to be overstated $10,000 and 2019 net income to be understated $9,000.

d. 2018 net income and December 31, 2018 retained earnings to be understated $10,000 each.

Answer rating: 100% (QA)

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