Effect of errors in physical imventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31 , 20Y8, Madison incorrectly counted its inventory as $648,160 instead of the correct amount of $667,600. Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. b. State the effects of the error on the income statement of Madison Rlver Supply for the year ended December 31 , 20y8. c. If uncorrected, what would be the effects of the error on the 20 rg income statement? c. If uncorrected, what would be the effects of the error on the 20Vg income statement? d. If uncorrected, what would be the effects of the error on the December 31,20rg, balance sheet? 1. The balance sheet would be correct, because the 20Yr inventary error reverses itself in 20Yg. 2. The income for 20r9 would be understated. 3. The current assets in 20r9 would be overstated. 4. The current assets in 20 Y9 would be understated