In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record: 1. $5,000 of insurance coverage that had expired (this $5,000 cost had been initially debited to the Prepaid Insurance account). 2. 2,900 of accrued salaries expense. As a result of these two oversights, the financial statements for the reporting period will: Multiple Choice Understate assets by $5,000. Understate expenses by $7,900. O Understate net income by $2,900. Overstate liabilities by $2,900. Launchpad