Effect of Errors in Physical Inventory Eclipse Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2014, Eclipse Motorcycle Shop incorrectly counted its inventory as $319,340 instead of the correct amount of $306,570. Enter all amounts as positive numbers a. State the effect of the error on the December 31, 2014, balance sheet of Eclipse Motorcycle Shop Balance Sheet Items Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Eclipse Motorcycle Shop for the year ended December 31, 2014 Income Statement Items Cost of Merchandise Sold Gross Profit Net Income . If uncorrected, what would be the effect of the error on the 2015 income statement? Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated / Understated Amount Overstated/Understated Amount Understated/ Overstated Amount