During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $226,644.00 instead of the correct amount of $182,385.00. The effect on the balance sheet and income statement would be a. assets overstated by $44,259.00; retained earnings understated by $44,259.00; and net income statement understated by $44,259.00 Ob. assets overstated by $226,644.00; retained earnings understated by $182,385.00; and no effect on the income statement c. assets, retained earnings, and net income all overstated by $44,259.00 d. assets and retained earnings overstated by $182,385.00; and net income understated by $226,644.00