Effect of errors in physical inventory

Effect of errors in physical inventory 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 River Supply for the year ended December 31 , 20 Y. c. If uncorrected, what would be the effects of the error on the 20Y income statement? d. If uncorrected, what would be the effects of the error on the December 31,20Y9, balance sheet? 1. The balance sheet would be correct, because the 20Y inventory error reverses itself in 20Y9. 2. The income for 20Y9 would be understated. 3. The current assets in 20Y9 would be overstated. 4. The current assets in 20Y9 would be understated