eBook Show Me How Effect of Omitting Adjustments For the year ending April 30, Peck Medical Services Co. mistakenly omitted adjusting entries for (1) $7,500 of supplies that were used, (2) unearned revenue of $12,000 that was earned, and (3) Insurance of $3,700 that expired. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended April 30. (a) Revenues (b) Expenses understated understated x (c) Net income understated Feedback Check My Work x Consider, in each situation, if the adjustment involves an expense or a revenue. A quick calculation for this would be to add the revenues not recorded and subtract the expenses not recorded. The difference would be the effect on net income