Effect of Errors in Physical Inventory Missourl River Supoly Co sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 3, 2012, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600 Enter all amounts as positive numbers 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 Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income c. If uncorrected, what would be the effect of the error on the 2093 income statement? Income Statement Items Overstated/Understated Amount Cost of Merchandise Sald Gross Profit Net Income han the Bachelet 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 Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income 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 d. If uncorrected, what would be the effect of the error on the December 31, 2013, balance sheet? 1. The December 31, 20Y3, balance sheet would be correct, since the 2012 Inventory error reverses itself in 20Y3. 2. The December 31, 2043, balance sheet would be incorrect, since the 2012 Inventory error overstates the beginning inventory in 2013. 3. The December 31, 2013, balance sheet would be incorrect, since the 2072 inventory error understates the beginning inventory in 2013