Effect of Errors in Physical Inventory Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 202, Missouri River Supply incorrectly counted its inventory as $516,310 instead of the correct amount of $531,800. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2012, balance sheet of Missouri River Supply, Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Understated Current Assets Understated Total Assets Understated Owner's Equity Understated b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2012 Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Overstated Gross Profit Understated Net Income Understated if uncorrected, what would be the effect of the error on the 2013 income statement? Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Understated Gross Profit Overstated Net Income Overstated