When the records of Debra Hanson Corporation were reviewed at the close of 2018, the following errors were discovered. For each item, indicate by a check mark in the appropriate column whether the error resulted in an overstatement, an understatement, or had no effect on net income for the years 2017 and 2018.

2017

2018

Item

Overstatement

Understatement

No Effect

Overstatement

Understatement

No Effect

1.

Failure to record amortization of patent in 2018.

2.

Failure to record the correct amount of ending 2017 inventory. The amount was understated because of an error in calculation.

3.

Failure to record merchandise purchased in 2017. Merchandise was also omitted from ending inventory in 2017 but was not yet sold.

4.

Failure to record accrued interest on notes payable in 2017; that amount was recorded when paid in 2018.

5.

Failure to reflect supplies on hand on balance sheet at end of 2017.