Question 14 30 pts You are reviewing Right Size Clothing Co.'s adjusted trial balance for the year ended December 31, 2021. You notice several omissions and incorrect items during your review, some of which are noted below. for each one, you are to determine what effect, if any, these items would have on the stated components of Right Size's December 31, 2021 Balance Sheet and the 2021 Income Statement if they are not corrected or updated. Ignore income taxes. Use the following code for your answers in the first box and the dollar amount in the second box N = No Effect O = Overstated U = Understated Show your answers using the format in the following example, In every answer the dollar amounts should be shown as positive numbers with commas but no dollar signs: 1,000. Example An accrual of utility expense of $1,000 was not recorded in December of 2020. Assets Liabilities 1,000 12/31/21 12/3121 12/3121 2021 Owners Equity Net Income 1,000 1,000 Transactions 1. Right Size hired 21 new employees on January 1, 2021 who earn two weeks of sick time each year. Sick time can be carried over indefinitely up to a three year accrual balance. Nothing had been recorded for sick pay earned by any of the 21 new employees (employee compensation averaged $975/week for each new employee) Assets Liabilities Net Income 2. The journal entry for patent expense for 2021 was recorded for $12,000. The correct amount was $25,000. Assets Liabilities Owners' Equity Net Income 3. A reasonably possible contingency for a 75,000 product liability litigation claim was discovered during the legal review. No entry had been recorded. Assets Liabilities Owners' Equity Net Income 4. Right Size provides a two-year warranty on its most popular product. Based on experience, it estimates warranty to be 15% in the first year and 2% in the second year. Nothing was recorded for December sales of $15,000. Assets Liabilities Owners' Equity Net Income