Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop Incorrectly counted its inventory as $337,500 instead of the correct amount of $328,850. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. Understated/Overstated Balance Sheet Items Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20Y8. Understated/Overstated Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Amount Income Statement Items c. If uncorrected, what would be the effect of the error on the 20Y9 income statement? Understated/Overstated Amount Amount

Enter all amounts at postove numbers c. If uncorrected, what would be the effect of the error on the 20Y9 income statement? d. If uncorrected, what would be the effect of the error on the December 31,209, balance sheet? 1. The December 31,20Yg, balance sheet would be correct, since the 20r8 inventory error reverses itself in 20Yr9. 2. The December 31,20Y9, balance sheet would be incorrect, since the 20Ys inventory error understates the inventory in 20Y9. 3. The December 31,20Y9, balance sheet would be incorrect, since the 20Ys inventory error overstates the inventory in 20Y9