Sara Yeller is the accountant for Crazy Hair, Inc., a local salon. After Sara finished preparing the financial staternents for the year, she realized that she failed to make an adjusting entry to record $1,300 of depreciation experise on equipment. What effect did this error have on Crazy Hair's financial statements? Begin by preparing the entry that Sara should have recorded prior to preparing the financial statements for the year. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Credit Accounts Depreciation expense, equipment Accumulated depreciation, equipment Debit 1,300 1,300 What effect did this error have on Crazy Hair's financial statements? Complete the table below to show the effect of the error (not having recorded the depreciation entry) on the various balances within Crazy Hair's financial statements. (Complete all answer boxes.) Overstated, Understated or Correct as is Total assets Total liabilities ....... Total equity ......... Total revenues........ Total expenses ...... Net income