When preparing adjusting entries at December $31,20$X$2,$ DC Co$.$ discovered that sales salaries of $\backslash (\backslash$$ $65,000\backslash )$ had not been accrued at December $\backslash (3120\backslash$times $1\backslash ).$ If the error is not corrected, what is the effect on the $20$X$1$ and $20$X$2$ comparative financial statements?

Salaries and Wages Expense is understated in $20$X$1$ and overstated in $20$X$2.$ Retained Earnings is overstated and total liabilities are understated in $20$X$1$ but properly stated in $20$X$2.$

Salaries and Wages Expense and total liabilities are understated in $20$X$1.$ Salaries and Wages Expense and total liabilities are overstated in $20$X$2.$ Retained Earnings is understated in $20$X$1$ and overstated in $20$X$2.$

Salaries and Wages Expense is overstated in $20$X$1$ and understated in $20$X$2.$ Retained Earnings is overstated and total liabilities are understated in $20$X$1$ but properly stated in $20$X$2.$

Salaries and Wages Expense and total liabilities are understated in $20$X$1.$ Salaries and Wages Expense and total liabilities are overstated in $20$X$2.$ Retained Earnings is overstated in $20$X$1$ and understated in $20$X$2.$