On September 1, 20x1, your company paid $6,000 in advance to advertise in a local paper for the six months September 1, 20X1 March 1, 20X2, and debited Advertising Expense.After the 20X1 books were closed, you discover that 20X1 Advertising Expense had not been adjusted at year end.Which of the following statements about the 20X1 accounts is true? A. 20X1 net income was understated by $6,000 B. Total assets are understated by $5,000Prep C. Prepaid Advertising is understated by $2,000 D. There is no error because only income statement accounts are affected