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5 . Assuming that the adjusting entry in ( 4 ) was inadvertently omitted, how would the omission affect the balance sheet and income statement?

5. Assuming that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
On the balance sheet, assets would beoverstated by$124,600 because the allowance for doubtful accounts would beunderstated by . In addition, the stockholders equity (retained earnings) would be by because bad debt expense would be and net income by on the income statement.

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