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Effect of errors in physical inventory Madison River Supply Co. sells canoes, kavaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31,20rs, Madison incocrectly counted its inventory as $441,530 instead of the correct amount of $454,780. Enter all amounts as positive nimbers. a. State the effects of the error on the December 31, 20r8, balance shect of Madison fiver Supply. c. If uncorrected, what would be the effects of the error on the 20Y9 income statement? d. If uncorrected, what would be the effects of the error on the December 31, 20Y9, balance sheet? 1. The balance sheet would be correct, because the 20Y8 inventory error reverses itself in 20Y9. 2. The income for 20Yg would be understated. 3. The current assets in 20 Y would be overstated. 4. The current assets in 20rg would be understated