5 Doints Exercise 5.4 (Static) Correcting net income. LO 5-2 Assume that a firm reports net income of $135,000 prior to making adjusting entries for the following items: expired rent, $10,500; depreciation expense, $12,300, and supplies used, $5,400. Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net Income? Answer is complete but not entirely correct. Net income will be overstated try 106,800 en Sh 4.3