or each of the following situations, analyze the error and indicate whether net income for the current fiscal year (2020) would be overstated, understated, or if there would be no effect on the current year net income as a result of this error.

1)As the invoice from the local utility company had not yet been received, the accounting clerk had not accrued for estimated utilities expense.

2)When the company purchased a three-year insurance policy, the accounting clerk recorded the payment as Insurance Expense.

3)The accounting clerk did not record a shipment of product on the last day of the fiscal year, because the customer had not paid for the product yet. The shipment was made FOB shipping point.

4)The companys accounting clerk was unaware that patents should be amortized over their useful life, and so no amortization has been recorded.

5)Equipment purchased in a previous year was charged to Office Expense instead of being capitalized and amortized.

5)The companys accounting clerk was unaware that patents should be amortized over their useful life, and so no amortization has been recorded.