During the taking of its physical inventory on August 31, 20Y7, Robin Interiors Company incorrectly counted its inventory as $543,500 instead of the correct amount of $560,700. Indicate the effect of the misstatement on Robin Interiors August 31, 20Y7, balance sheet and income statement for the year ended August 31, 20Y7. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers.

Effect of Inventory Errors During the taking of its physical inventory on August 31, 2017, Robin Interiors Company incorrectly counted its inventory as $543,500 instead of the correct amount of $560,700. Indicate the effect of the misstatement on Robin Interiors' August 31, 2017, balance sheet and income statement for the year ended August 31, 2047. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers. Merchandise inventory Income Statement X Overstated X Current assets Balance Sheet Overstated X $ Total assets Income Statement X Overstated x $ Owner's equity Balance Sheet Overstated X $ Cost of merchandise sold Income Statement Understated X S Gross profit Balance Sheet X Overstated X $ Net income Balance Sheet X Overstated x