A company made no adjusting entry for accrued and unpaid employee salaries of $$8,400$ on December $31.$ Which of the following statements is true?

Multiple Choice

It will understate expenses and overstate net income by $$8,400.$

It will understate net income by $$8,400.$

It will overstate assets and liabilities by $$8,400.$

It will have no effect on income.

It will understate assets by $$8,400.$