Indicate the impact that each of the following errors or omissions would have on a company's 2016 net profit, assets and liabilities.
Use the symbols U = understate, 0 = overstate or NE = no effect to indicate the impact. Dollar amounts are not required.
1. Management uses the percentage-of-sales approach method to calculate the allowance for doubtful accounts. Management calculated the allowance for doubtful debts on the basis of 2 percent of sales. However by year- end it was aware that the rate should have really been 3 percent of sales. Management does not adjust the allowance for doubtful accounts at year-end. Sales equal $1 million.

2. The company calculated depreciation over eight years where the expected life of the asset is five years. The difference in depreciation per year amounts to $100000.
3. The company owns 20 percent of X shares, having paid $200 000 for these shares last year. During the year, X made a profit of $1 million and paid dividends in total to all shareholders of $600 000. The company used the cost method when it should have used the equity method.
4. Company sales amount to $1 million and the company estimates that warranty costs will be 2 percent of sales for each of the first two years. No warranty expenses are recorded in this year.
5. Auditors estimate that the provision for long service leave should be $1.2 million, but the company has recorded it as $900 000.