For the following errors, indicate the combined effect on the indicated financial statement items. 2021 Ending Inventory was understated $500. Wages Payable of $2,000 were not accrued at 12/31/21. Select one: O a. 2021 Net Income 12/31/21 Working Capital Overstated Overstated O b. 2021 Net Income 12/31/21 Working Capital Overstated Understated o c. 2021 Net Income Overstated 12/31/21 Working Capital Understated O d. 2021 Net Income No error 12/31/21 Working Capital Overstated O 2021 Net Income 12/31/21 Working Capital Understated Understated The Sables Company understates depreciation by $400 and records the $300 purchase of office supplies on credit with this journal entry: Office Supplies $300 Unearned Revenue $300 Indicate the effect of the errors on Total Assets and Working Capital, respectively: Select one: a. Overstated $400, No error O b. Overstated $400, Understated $300 O c. Understated $700, Understated $700 d. Understated $700, Understated $300 e. Understated $700, No error