Effects of Errors During the current accounting period, Page Company makes the the current accounting period, Page Company makes the following errors. The company uses a perpetual inventory system Total Total Lisbilibes Equity Net Total Total Error Income Assets Liabilities Example: Failed to record a cash sale: 1. The purchase of equipment for cash is recorded as a debit to Equipment and a credit to Accounts Payable 2. Falled to reoord the purchase of inventory on credit. 3. Cash received from a customer in payment of its account is recorded as if the receipt were for a current period sale. 4. Failled to record a credit sale. 5. At the end of the year, the receipt of money from a 60-day, 12% bank loan is recorded as a debit to Cash and a credit to Sales Revenue 6. Failed to record depreciation at the end of the current period. UU N Indicate the effect of each error on the net income, total assets, total liabilities, and total sharehoiders equity at the end of the accounting period by using the fallowing code: O- overstated, U - understated, N- no effect. Disregard income taxes Total Net Total Total Error Income Liabilities Equity 1 The purchase of equipment for cash is recorded as a debit to Equipment and a credit to Accounts Previous Next All work saved Save and Exit Submit Test for Grading