The bookkeeper for Macondray Co. forgot to make an adjusting entry to record revenue earned but not yet billed to customers. The effect of this error is:

-An overstatement of assets and net income offset by an understatement of owners equity

-An overstatement of net income and an understatement of assets

-An understatement of assets, net income, and owners' equity

-An overstatement of liabilities offset by an understatement of owners' equity