During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,198 instead of the correct amount of $172,927. The effect on the balance sheet and income statement would be Oa. sets overstated by $52,271, retained earnings understated by $52,271; and net income statement understated by $52,271 Ob. assets overstated by $52,271, retained earnings understated by $52,271; and no effect on the income statement