5-9

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 $41,300, on which a cash discount of 2% was taken.

2.The inventory included $28,440of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,670had 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 $30,480were entered in the sales journal as of December 31, 2017. Of these, $23,360were 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 $35,324. Of this amount, $23,324was 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 $______________________