Reference no: EM131561572
The current assets and current liabilities sections of the balance sheet of Swifty Company appear as follows.
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SWIFTY COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017
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Cash
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$50,000
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Accounts payable
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$ 57,390
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Accounts receivable
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$92,000
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Notes payable
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71,770
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Less: Allowance for doubtful accounts
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7,220
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84,780
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$129,160
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Inventory
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160,190
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Prepaid expenses
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8,170
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$303,140
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The following errors in the corporation's accounting have been discovered:
1. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $42,300, on which a cash discount of 2% was taken.
2. The inventory included $28,040 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,070 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3. Sales for the first four days in January 2018 in the amount of $29,450 were entered in the sales journal as of December 31, 2017. Of these, $22,320 were sales on account and the remainder were cash sales.
4. Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $36,794. Of this amount, $24,794 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.
Calculate the following adjusted balances.
Cash
Accounts Receivable
Inventory
Accounts Payable
Notes Payable