On September 1, Hall Company paid $2,700 for one year of advertising in advance. Hall debited Advertising Expense, which is an alternate way of recording the initial expenditure. The advertising expense will be used evenly throughout the year. 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: Choose One Expense: Choose One Net Income: Choose One Balance Sheet Accounts Assets: Choose One Liabilities: Choose One v Retained Earnings: Choose One