A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on december 31. this oversight would:

Salaries expense understated

Salaries payable understated

Net profit overstated

Explanation:

Accrued expenses are expenses that are already incurred but not recorded in the account books.

It is a common occurrence towards the end of the business year as most activities around that period roll over to the next accounting year, and if these activities are not cut off as required, the aim of accrual basis of accounting is defeated.

If the $28,000 end of the year wages is not accounted for, the expenses for the incumbent year will be understated by $28,000 and the incoming year overstated,

Salaries payable for the incumbent year understated by $28000 and the profit for the year overstated by $28,000

This oversight would overstate net income by $28,000. Since the company's books show that they accrued $28,000 but did not pay it out in employee wages, they are overstating what they actually made by $28,000. Once they fix their books to show that the revenue was actually paid out in employee wages, they will see that they did not actually keep that revenue.