1) The failure to properly record an adjusting entry to accrue an expense will result in an a. Understatement of expenses and an understatement of liabilities b. Overstatement of expenses and an understatement of assets c. Understatement of expense and an overstatement of assets d. Understatement of expenses and an overstatement of liabilities Select answer and (in your own words) provide your reasoning why you selected that answer. Your why may include an example.

1.1) Company currently shows a debit balance in the Inventory account of $250,000. A year-end count found that there was $175,000 of inventory on-hand at 12/31/2020. Prepare the adjusting journal entry needed at 12/31/2020. Good journal entry form is required.

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