Perpetual Inwentory Using LIFO Beginning inventory, purchases, and sales data for portable game players are as follows: The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inwentory balance after each sale, presenting the data in the form illustrated in Exhibit 4. the correct amount of $800,260. 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 20 is income statement? d. If uncorrected, what would be the effect of the error on the December 31, 20Y3, balance sheet? 1. The December 31,20Y3, balance sheet would be correct, since the 20Y2 inventory error reverses itseif in 20Y3. 2. The December 31, 20r3, balance sheet would be incorrect, since the 20Y2 inventory error overstates the beginning inventory in20r3. 3. The December 31,20Y3, balance sheet would be incorrect, since the 20Y2 inventory error understates the beginning inventery in 20y3. x