Does the error cause net income for 2020 to be overstated, understated, or "no effect"? Consider each item independent of the other items.

Group of answer choices

Patent amortization was not recorded in 2020

[ Choose ] understated no effect overstated

Overstatement of revenue

[ Choose ] understated no effect overstated

Overstatement of ending inventory

[ Choose ] understated no effect overstated

Overstatement of purchases

[ Choose ] understated no effect overstated

Wages payable were not recorded at 12/31/2020

[ Choose ] understated no effect overstated

Equipment (with a useful life of 5 years) was purchased and expensed in 2017

[ Choose ] understated no effect overstated

Equipment purchased in 2020 was expensed.

[ Choose ] understated no effect overstated

Failure to record accrued interest on notes payable in 2020

[ Choose ] understated no effect overstated

Failure to record accrued interest on notes payable in 2019; that amount was recorded when paid in 2020.