An unadjusted trial balance has a balance of $6,000 in Unearned Revenue. If 30% of this was earned in March but the company neglected to make the adjusting entry at the end of March, what is the effect on the financial statements?

a.

Revenue would be overstated by $1,800

b.

Revenue would be understated by $4,200

c.

Liabilities would overstated by $1,800

d.

Liabilities would be overstated by $4,200