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, 2012, River Supply incorrectly counted its inventory as $606,660 instead of the correct amount of $624,860. 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 Current Assets Total Assets Owner's Equity 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 Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount c. If uncorrected, what would be the effect of the error on the 20Y3 income statement? Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income 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, 20Y2 River Supply incorrectly counted its inventory as $606,660 instead of the correct amount of $624,860. 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 Current Assets Total Assets Owner's Equity 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 Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount c. If uncorrected, what would be the effect of the error on the 20Y3 income statement? Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income