In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record. 1. $5,100 of insurance coverage that had expired (this $5,100 cost had been initially debited to the Prepaid insurance account) 2. $2,950 of accrued salaries expense. As a resuit of these two oversights, the financial statements for the reporting period will: Multiple Choice Understate net income by $2,950. Understate assets by $5,100 Overstate liabilities by $2,950. Understate expenses by $8,050