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For each of the following potential unrecorded liabilities, determine the effects of the omission on both the balance sheet and income statement of the client.

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For each of the following potential unrecorded liabilities, determine the effects of the omission on both the balance sheet and income statement of the client. Assume that the inventories recorded on the balance sheet reflect the results of a year-end (December 31 physical Inventory Required: a. An Invoice for $3,000 worth of inventory items, dated January 1 and bearing terms of FOB destination, was not recorded. The goods were shipped December 27 and were received on December 30. b. An invoice for $5,500 worth of inventory items, dated December 30 and bearing terms of FOB destination, was not recorded. The goods were shipped December 28 and received January 2 C. An invoice for $8,000 for o delivery truck, dated January 2 and bearing terms of FOB shipping point was not recorded. The truck was shipped December 30 and received on January 3. d. An invoice for $1.000 for legal fees rendered in December was not recorded (For all requirements. If there is no effect select "No effect" from dropdown.) Complete this question by entering your answers in the tabs below. Required: Required 2 Required Required An invoice for $3,000 worth of Inventory items, dated January 1 and bearing terms of FOB destination, was not recorded. The goods were shipped December 27 and were received on December 30, (1) Balance sheet offect Understatement of liabilities $ 3,000 3,000 (2) Income statement offect: $ (For all requirements, if there is no effect select "No effect" from dropdown.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 An Involce for $3,000 worth of Inventory Items, dated January 1 and bearing terms of FOB destination was not recorded. The goods were shipped December 27 and were received on December 30. (1) Balance sheet effect Understatement of liabilities $ 3,000 3,000 (2) Income statement effect $ No effect Overstatement of net income before taxes Understatement of assets and liabilities Understatement of cost of goods sold Understatement of expenses Understatement of Habilities

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