On August 1, Campbell Company paid $12,000 for two years of insurance in advance. Campb debited Insurance Expense, which is an alternate way of recording the initial expenditure. If th appropriate adjusting entry is not made at the end of the year, what will be the effect on (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no eflect)? (c) Balance sheet accounts (overstated, understated, or no effect)? Income Statement Accounts Understated Understated Net Income:Overstated Expense Balance Sheet Accounts Assets: Understated Liabilities: Understated v Retained Earnings: Understated v Undo Clear Help