Question: Alpha failed to record the following: (1) A journal entry for the payment for inventory with a purchase discount of $100 (previously purchased on credit

Alpha failed to record the following: (1) A journal entry for the payment for inventory with a purchase discount of $100 (previously purchased on credit by Alpha for $5,000) using the periodic inventory system and (2) an AJE for utilities (water and electricity) of $1,200. What effect does all of this have on assets, liabilities, and net income?

Assets:

Liabilities:

Net Income:

Overstated, Understated or Not Effect

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