Frontier Bicycle Technology Pty Ltd is a bicycle retailer who does not specialise in the sale of bicycles but in new technologies that will protect the ever-growing bicycle commuter from potential injury. The following information was extracted from Frontier Bicycle Technology Pty Ltd on 30 June 2020 after the inventory_qualitative review was completed. The general journal entry arising from the above inventory review as per AASB 102 addressing the concept of 'Prudence' is: DEBIT Inventory write-down $2 060; CREDIT Inventory $2060. What would be the effect on the accounting equation if the qualitative review of prudence were not adopted? The current asset inventory would be overstated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060. The current asset inventory would be understated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060. The current asset inventory would be overstated by $2,060 and the inventory write-down would be overstated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060. The current asset inventory would be overstated by $2,060 and the inventory write down would be understated by $2,060. The flow on impact would mean that net profit would be understated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060