During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $216,669 instead of the correct amount of $165,958. The effect on the balance sheet and income statement would be assets overstated by $50,711; retained earnings understated by $50,711; and net income statement understated by $50,711 O assets, retained earnings, and net income all overstated by $50,711 assets overstated by $50,711; retained earnings understated by $50,711; and no effect on the income statement assets and retained earnings overstated by $50,711; and net income understated by $50,711