Effect of errors in physical inventory Fonda Motorcycle Shop selis motorcycles, ATVs, and other related supplies and accessories, Ouring the taking of its physical inventory on December 31,20y, Fonda Incorrectly counted its inventory as $302,520 instesd of the correct amount of $290,420. Enter all amounts as positive numbers: a. State the effects of the error on the December 31,20yi, balance sheet of Fanuth 0. state the effects of the emor on the income statement of Fonda Motorcycle Shop for the vear ended December 31 , 20Y1. w. an uncorrecteo; what woudd be the effects of the error on the 20Y2 income statement? c. If uncorrected, what would be the effects of the error on the 20Y2 income statement? d. If uncorrected, what would be the effects of the error on the December 31,20Y2, balance sheet? 1. The December 31,20Y2, balance sheet would be correct, since the 20Y1 inventory error reverses itself in 2. In the December 31,20Y2, balance sheet, inventory would be understated. 3. In the December 31,20Y2, balance sheet, inventory would be overstated. 4. In the December 31,20Y2, balance sheet, retained earnings would be understated