During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted...

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During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $216,657 instead of the correct amount of $184,403. The effect on the balance sheet and income statement would be a. assets overstated by $32,254; retained earnings understated by $32,254; and net income statement understated by $32,254 b. assets overstated by $32,254; retained earnings understated by $32,254; and no effect on the income statement c. assets, retained earnings, and net income all overstated by $32,254 d. assets and retained earnings overstated by $32,254; and net income understated by $32,254 During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $216,657 instead of the correct amount of $184,403. The effect on the balance sheet and income statement would be a. assets overstated by $32,254; retained earnings understated by $32,254; and net income statement understated by $32,254 b. assets overstated by $32,254; retained earnings understated by $32,254; and no effect on the income statement c. assets, retained earnings, and net income all overstated by $32,254 d. assets and retained earnings overstated by $32,254; and net income understated by $32,254