While reviewing the books of Simon's Pest Control Service you discover that no adjusting entry was made for estimated bad debts traceable to sales in 2022 (the company's first year of operation). Assuming this error is not corrected, which of the following is true at year-end 2022? Assets are correct, profit is overstated Liabilities are overstated, profit is understated Assets are understated, profit is overstated Assets are correct, profit is overstated