During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,572 instead of the correct amount of $178,381. The effect on the balance sheet and income statement would be Oa. assets overstated by $47,191; retained earnings understated by $47,191; and net income statement understated by $47,191 Ob. assets overstated by $47,191; retained earnings understated by $47,191; and no effect on the income statement Oc. assets, retained earnings, and net income all overstated by $47,191 Od. assets and retained earnings overstated by $47,191; and net income understated by $47,191