Effect of Inventory Errors During the taking of its physical inventory on December 31, 2014, Zula Company incorrectly counted its inventory as $364,090 instead of the correct amount of $407,780. Indicate the effect of the misstatement on Zula's December 31, 2014 balance sheet or income statement for the year ended December 31, 2014. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value Cost of merchandise sold Income Statement Overstated Current assets Balance Sheet Understated v Gross profit Income Statement Understated Merchandise inventory Balance Sheet Understated Net Income Income Statement Understated Owner's equity Balance Sheet Understated Total assets Balance Sheet Understated When the ending inventory is donated or overstated conderhou d ers or overstat sheet Since cost of merchandise sold is an expense. what is the impact of an understorverste statement and on owner's equity in the balance sheet? t es both out and also on the balance pense on grosso and net income on the income Leaming Objectives Previous Nex) Che Wack