eBook Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2011, Fonda incorrectly counted its inventory as $452,500 instead of the correct amount of $425,500. 0000 a. State the effects of the error on the December 31, 20Y1, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Understated/Overstated Amount Inventory Overstated Current Assets Total Assets Overstated Overstated Stockholders' Equity Overstated c. If uncorrected, what would be the effects of the error on the 20Y2 income statement? Income Statement Items Cost of Goods Sold Gross Profit Net Income Understated/Overstated Overstated Understated Understated Amount 0001