X Company prepares montbly Seancial sabts Os s 6,000 lncees in Cash and a with this entry? X Conpany .AO paid $06,000 to a sapplier fromm whom the frms h BO received 366,000 from a custo who bontM 1 cO received 966,000 from a new imestor ad revlously bonght cnion on wocount recelved S66,000 from a custosmer who had previounly bn dise to cuatommens on account foe 966,000. borrowed 966,000 froes a bank and slgued a sote N X Commpaay prepares annual cial wo-year insurance polly After the adjasting entry on tements On Septemmber 1, 2017, X Copany paid 854,000 in wdvassce for X Company's 2017 Smancial statemnts show? December 31, 2037, whntwi 8.AO Prepaid Iesuraace, $45.000 Ieaurance expense, $9,000 DO Prepaid Insuranoe, 0,500 surance expense, s DO Prepaid Insurance, s0 Insurazce expense, $54,000 FO Prepaid Ineuranoe, $9,000 Ineerance expense, $45,000 13,500 854,000, Insurance EO Prepaid Inarance, $13,5oo; Insurance expense, 40500 840.500 a copy machine. The rental ngreement calls lump sum payamest at the beginning of each month, plus so.os per cops payable on the 10th of the folonring February, 1.600 copies were made; in March, 1.300 eopies were mades in April, 1,200 copies were made. What tX Company prepares monthly fnancial statementa The company resta month. Ina appeared on X Cospany's March 31 fisancial statementa 9.AO Reat expeas, $478, Rent Payable, $128 DO Rent expense, $470, Reat Payable, $120 CO Rent expense, $478 Rent Payable, $478 DO Reat expense, $470 Rent Payable, $470 EO Reat expense, 350: Rent Payable, $350 FO Rent expense, S470 Rent Payable, 8350 es moathly financial statements. On May 14, the company paid a supplier for a purchsse it made a decrease in Cash and a decrease in n April on account. X Company's accountant recorded the May 14 transaction as Retained s pt X Company prepar Earnings. What was the effect of this incorrect entry on the May 31 financial statements? OAO Retained Earnings was overstated. BO Accounts Receivable was overstated. CO Inventories were understated. O Cash was understated O Accounts Payable was overstated. Revenue was understated