Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcydes, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted its inventory as $160,360 instead of the correct amount of $153,950, Enter all amounts as positive numbers. a. State the effect of the error on the December 31 Balance Sheet Items balance sheet of Fonda Motorcycle Shop, Overstated/Understated Amount Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20vS. Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount