Check my work During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2018, you discover the following: a. An insurance policy covering three years was purchased on January 1, 2018, for $7,200. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item. 2019. The $900 was credited to sales revenue. No entry was recorded for the cost of merchandise at December 31. accrual was recorded for interest. 10 points eBook Print References b. During 2018, the company received a $900 cash advance from a customer for merchandise to be manufactured and shipped in c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $970 were on hand d. Hales borrowed $27,000 from a local bank on October 1, 2018. Principal and interest at 12% will be paid on September 30, 2019-No e. Net income reported in the 2018 income statement is $42,000 before reflecting any of the above items Required Determine the proper amount of net income for 2018. (Amounts to be deducted should be indicated by a minus sign.) Unadjusted net income Adjustments: b. C. d. Adju Insurance expense overstated Insurance expense understated Interest expense overstated Interest expense understated Sales revenue overstated Mc Graw Hill