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 31 , 20Y8, Madison incorrectly counted its inventory as $436,620 instead of the correct amount of $449,720. Enter all amounts as positive numbers. a. State the effects of the error on the December 31,20Y8, balance sheet of Madison River Supply. 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 20Y9 would be understated. 3. The current assets in 20Y9 would be overstated. 4. The current assets in 20Y9 would be understated 
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