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 , \\( 20 Y 2 \\), Missouri River Supply incorrectly counted its inventory as \\( \\$ 506,470 \\) instead of the correct amount of \\( \\$ 521,660 \\). Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. b. State the effect of the error on the income statement of Missouri River Supply for the year ended December \\( 31,20 Y 2 \\). c. If uncorrected, what would be the effect of the error on the \\( 20 \\mathrm{Y} 3 \\) income statement? d. If uncorrected, what would be the effect of the error on the December 31, 20Y3, balance sheet? 1. The December 31, 20Y3, balance sheet would be correct, since the \\( 20 \\mathrm{Y} 2 \\) inventory error reverses itself in \\( 20 \\mathrm{Y} 3 \\). 2. The December 31,20Y3, balance sheet would be incorrect, since the \\( 20 \\mathrm{Y} 2 \\) inventory error overstates the beginning inventory in20Y3. 3. The December 31, 20Y3, balance sheet would be incorrect, since the \\( 20 \\mathrm{Y} 2 \\) inventory error understates the beginning inventory in \\( 20 \\mathrm{Y} 3 \\)