The bookkeeper of Lakeside Company, which has an accounting year ending December 31, made the following errors:

A $1,000 Accounts Receivable collection from a customer was received on December 29, 2019, but not recorded until the date of its deposit in the bank, January 4, 2020.

In 2018, Lakside forgot to record depreciation of $700 on their equipment.

Assume no other errors have been made and that no correcting entries have been made. Ignore income taxes.

Total assets at December 31, 2019 were

A) understand by $1,700.

B) understand by $1,000.

C) neither understated nor overstated

D) understated by $300.

E) overstated by $700.