Fonda Motorcyde Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2078, Fonda Motorcycle Shop incorrectly counted its inventory as $261,920 instead of the correct amount of $251,440. Enter all amounts as positive numbers a. State the effect of the error on the December 31, 2078, balance sheet of Fonda Motorcycle Shop Overstated / Understated Merchandise Inventory Overstated Current Assets Balance Sheet Items Amount Overstated Total Assets Overstated Owner's Equity Overstated b. State the effect of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 2076. Income Statement Items Overstated / Understated Amount Cost of Merchandise Sold Understated Gross Profit Overstated Net Income Overstated Incorrected, what would be the effect of the error on the 2019 income statement? Income Statement Items Understated / Overstated Amount Cost of Merchandise Sold Overstated Gross Profit Understated Net Income Understated III Check My Work