7. While working on the audit for One Company for the year ended December 31, 2019, you discover that interest expense of $10,000 was not accrued at the end of 2017. It was recorded when paid in 2018. This error caused which of the following? A. 2017 Net income to be overstated by $10,000. B. 2017 Net income to be understated by $10,000. C. 2018 Retained Earnings to be overstated by $10,000. D. 2018 Retained Earnings to be understated by $10,000. E. None of the above