Your employer has a MondayFriday workweek; the 5-day payroll totals $20,000 each week. In 20X1, December 31 is a Thursday. Just before closing the books, you realize that no adjusting entry was made. If no correcting entry is recorded, liabilities will be understated and net income will be overstated liabilities will be overstated and net income will be overstated liabilities will be overstated and net income will be understated liabilities will be understated and net income will be understated everything will be fine. The original adjusting entry was unnecessary and no correction needs to be made.