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Comet Company received customer advance of $80,000 on 7/1/2019. The firm correctly accounted for the...

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Accounting

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Comet Company received customer advance of $80,000 on 7/1/2019. The firm correctly accounted for the costumer advance as unearned revenue on that day, but failed to make any adjusting entries related to subsequent services provided to the customer. Comet performed half of the service in 2019 and the other half in 2020. Indicate the effect (overstated, understated, or no effect) of the errors on the 2019 and 2020 financial statements. If there is an effect, state the amount. Ignore income tax considerations. IMPORTANT: In the two blanks next to each item, the first is for the direction of the effect: use for overstated, u for understated, and NE for no effect; the second is for the amount of the effect: enter unsigned amount without dollar sign, decimal points, or thousand separator (or any other sign or character). If no effect, enter O. 2019 Net Income 2019 Assets 2019 Liabilities 2019 Equity 2020 Net Income 2020 Assets 2020 Liabilities 2020 Equity

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