Effect of Errors in Physical Inventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 3 incorrectly counted its inventory as $781,770 instead of the correct amount of $805,220 Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply Balance Sheet Items Inventory Current Assets Total Assets Stockholders' Equity Understated/Overstated Amount b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8. Income Statement Items Cost of Goods Sold Gross Profit Net Income Overstated/Understated Amount c. If uncorrected, what would be the effects of the error on the 20Y9 income statement? Overstated/ Understated Amount Income Statement Items Cost of Goods Sold Gross Profit