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 $325,230 instead of the correct amount of $312,220. Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 2011, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Amount Overstated/Understated Overstated Inventory Current Assets Overstated Total Assets Overstated Stockholders' Equity Overstated b. State the effects of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 2011 Income Statement Items Amount Overstated/Understated Understated Cost of Goods Sold Gross Profit Overstated Net Income Overstated c. If uncorrected, what would be the effects of the error on the 20Y2 Income statement? Income Statement Items Amount Understated/Overstated Overstated Cost of Goods Sold Gross Profit Understated Net Income Understated