During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $205,027 instead of the correct amount of $181,541. The effect on the balance sheet and income statement would be a. assets overstated by $23,486; retained earnings understated by $23,486; and net income statement understated by $23,486 b. assets overstated by $23,486; retained earnings understated by $23,486; and no effect on the income statement c. assets, retained earnings, and net income all overstated by $23,486 d. assets and retained earnings overstated by $23,486; and net income understated by $23,486.