During the taking of its inventory on September 30, 2022, Big City Bikes incorrectly counted its ending inventory as $500,000 instead of the correct amount of $525,000. The effect on the balance sheet and income statement would be as followS: a) Ending inventory overstated by $25,000, net income overstated by $25,000, Retained Earnings is overstated by $25,000 b) Ending inventory overstated by $25,000, no effect on the income statement, Retained Earnings is understated by $25,000 c) Ending Inventory understated by $25,000, Net Income understated by $25,000, Retained Earnings understated by $25,000 d) Ending inventory overstated by $25,000, net income understated by $25,000, Retained Earnings is understated by $25,000