Effect of Errors in Physalary at amount of $425.500 a State the effects of the ae on the December 31, 2011. balance sheet of fond Balance Sheet Bame Indary Current A Understated/Overstated Stockholders Erty State the effects of the error an the income statement of Panda Marcyle Shop for the Income Statement Items Understated/Overstated Oras Prof Net came If what would be the effects of the errer on the 2012 Income Statement Item Understated/Overstated Ceet of Goode d Grees Prufs Net came d. uncarede, what be the effects of the armor entry or even 2012 the December 31, 2012, balance 1. The Decanter 21, 2012, balance sheet would be conect, since the 2011 2. In the December 31, 2012, balance sheet, inventory would be understated 3. In the Decender 31, 2012, balance sheet, inventory would be overstated 4. In the December 11, 2012, balance sheet, retained eamings would be understand