Effect of errors in physical inventory Madison River Supply Co. selis canoes, kavals, whitewater rafts, and other boating supplies, During the taking of its physical inventory on December 31,208, Madison incorrectir counted its inventory as $844,790 instead of the correct amount of $870,130. Enter alf 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, 20Y8. c. If uncorrected, what would be the effects of the error on the 209 income statement? d. If uncorrected, what would be the effects of the error on the December 31,209, balance sheet? 1. The balance sheet would be correct, because the 20rg inventory error reverses itself in 20rg. 2. The income for 20 ro would be understated. 3. The current assets in 20 y9 would be overstated. 4. The current assets in 20 rg would be understated