Reference no: EM132488550

Question - The current assets and current liabilities sections of the balance sheet of Culver Company appear as follows.

CULVER COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017

Cash $43,000

Accounts payable $59,440

Accounts receivable $93,400

Notes payable 71,730

Less: Allowance for doubtful accounts 8,5208 4,880 $131,170

Inventory 154,250

Prepaid expenses 8,210 $290,340

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 $44,000, on which a cash discount of 2% was taken.

2. The inventory included $29,130 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,210 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 $27,660 were entered in the sales journal as of December 31, 2017. Of these, $22,820 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 $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

Required - Calculate the following adjusted balances.

Cash

Accounts Receivable

Inventory

Accounts Payable

Notes Payable.