K Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, River Supply incorrectly counted its inventory as $652,930 instead of the correct amount of $672,520. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. Understated/Overstated Balance Sheet Items Merchandise Inventory Current Assets Total Assets Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Income Statement Items Cost of Merchandise Sold Understated Gross Profit Understated Owner's Equity b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2. Net Income Understated Understated Overstated/Understated Overstated Understated Understated c. If uncorrected, what would be the effect of the error on the 20Y3 income statement? Overstated/Understated Understated Overstated Amount Overstated Chock My Work 3 more Check My Work uses remaining. X X X X Amount Amount X X X X X X Prev

Missouri River Supply Co, sells canoes, kayaks, whitewater rafts, and other boating supplles. During the taking of its physical inventory on December 31,20r2 River Supply incorrectly counted its inventory as $652,930 instead of the correct amount of $672,520. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31,20y2. c. If uncorrected, what would be the effect of the error on the 20Y3 income statement