During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $217,365.00 instead of the correct amount of $182,136.00. The effect on the balance sheet and income statement would be Oa. assets overstated by $35,229.00; retained earnings understated by $35,229.00; and net income statement understated by $35,229.00 Ob.assets overstated by $217,365.00; retained earnings understated by $182,136.00; and no effect on the income statement Oc. assets, retained earnings, and net income all overstated by $35,229.00 Od. assets and retained earnings overstated by $182,136.00; and net income understated by $217,365.00