During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $210,306 instead of the correct amount of $175,452. The effect on the balance...

Extracted text: During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $210,306 instead of the correct amount of $175,452. The effect on the balance sheet and income statement would be Oa, assets overstated by S34,854; retained earnings understated by $34,854; and net income statement understated by $34,854 Ob. assets overstated by S34,854; retained earnings understated by S34,854; and no effect on the income statement Oc. assets, retained earnings, and net income all overstated by $34,854 Od. assets and retained earnings overstated by $34,854; and net income understated by S34,854 Next Drovious