Effects of Errors in Adjustments What will be the effect-understated (u), overstated (o), or no effect (n)-on the income of the pre- sent and future periods if the following errors were made. In all cases, assume that amounts carried over into 20X7 would affect 20X7 operations via the routine accounting entries of 20X7. 1. Revenue has been collected in advance, but earned amounts have not been recognized at the end of 20X6. Instead, all revenue was recognized as earned in 20X7. 2. Revenue for services rendered has been earned, but the unbilled amounts have not been recognized at the end of 20X6. 20X6 Period 20X7 3. Accrued wages payable have not been recognized at the end of 20X6. 4. Prepaid items like rent have been paid (in late 20X6), but not adjusted at the end of 20X6. The payments have been debited to prepaid rent. They were transferred to expense in mid-20x7.