At the end of the accounting year,December 31,20x4,adjusting entries were not made for wages that had been earned but not yet paid,$1,800,and rent revenue of $1,400 that had been earned but not yet collected.As a consequence,the 20x4 amount of pre-tax earnings was:
A) Overstated by $3,200.
B) Understated by $3,200.
C) Overstated by $400.
D) Understated by $400.
Correct Answer:
Verified
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