5. In preparing its financial statements for the current year, a company's closing inventory was understated by 50,000. What will be the effect of this error if it remains uncorrected? O The current year's profit will be overstated and next year's profit will be understated The current year's profit will be understated but there will be no effect on next year's profit O The current year's profit will be understated and next year's profit will be overstated The current year's profit will be overstated but there will be no effect on next year's profit 6. Which two of the following would result in a debit entry to the irrecoverable debts expense account? Irrecoverable debt written off Irrecoverable debt recovered Increase in allowance for receivables Decrease in allowance for receivables