View Policies Show Attempt History Current Attempt in Progress Accrued salaries payable of $110000 were not recorded at December 31, 2020. Office supplies on hand of $62000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause 2020 net income to be overstated $48000 and 2021 net income to be understated $62000. 2021 net income and December 31, 2021 retained earnings to be understated $62000 each. 2021 net income to be understated $172000 and December 31, 2021 retained earnings to be understated $62000. 2020 net income and December 31, 2020 retained earnings to be understated $110000 each. eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Answer