$5.$ 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.