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If a firm reports net income of $71,000 prior to making adjusting entries for the following items: expired rent, $5,100; depreciation expense, $6,300; and supplies
If a firm reports net income of $71,000 prior to making adjusting entries for the following items: expired rent, $5,100; depreciation expense, $6,300; and supplies used, $1,700.
Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?
Will the Net Income be overstated or understated and by what amount?
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