On October 1, Henderson Company paid $19,800 for two years of insurance in advance. Henderson debited Insurance Expense, which is an alternate way of recording the initial expenditure. If the 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 effect)? (c) Balance sheet accounts (overstated, understated, or no effect)? Income Statement Accounts Revenue: Expense: Choose One C Choose One Net Income: Choose One o Balance Sheet Accounts Assets Choose One Lab es Choose One o Retained Earnings: Choose One D