During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop 173,096.00. What would be the effect on the balance sheet and income statement? Select the correct answer. O assets overstated by $51,500.00 retained earnings understated by $51,500.00 net income statement understated by $51,s00.00 O assets overstated by $224,596.00 retained earnings understated by $173,096.00 no effect on the income statement. Oassets and retained earnings overstated by $51,500.00 net incorme overstated by $51,500.00, O assets and retained earnings overstated by $173,096.00 net income understated by $224.596.00 ry as $224,596.00 instead of the correct amount of