Analysis 2: Waddell's accountant failed to record an event. The event was a $2,000 collection of an accounts receivable. What is the effect of this error on each of the financial statements? Be specific by using the terms understated, overstated, or no change in your explanation.

Analysis 1: Waddell's accountant failed to record an event. The event was a $10,000 operating expense on account that will be paid in the next accounting period. What is the effect of this error on each of the financial statements? Be specific by using the terms understated, overstated, or no change in your explanation