Barney Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that this was the only error it made and ignore income taxes Fundetected, what is the effect of this error on Bamey's December 31, 2020 balance sheet? Assets understated by 5600,000 but shareholders' equity is correct Assets overstated by $600,000 but shareholders equity is correct Assets understated by 5600,000 and shareholders equity understated by $600,000 Assets overstated by $600,000 and shareholders equity overstated by $600,000