Blossom Co. Balance Sheet (Partial) As of December 31, 2017 Cash $17,000 Accounts payable $27,000 Accounts receivable $38,000 Notes payable 13,000 Less: Allowance for doubtful accounts 1,000 37,000 Unearned revenue 2,000 Inventory 61,000 Total current liabilities $42,000 Prepaid expenses 5,000 Total current assets $120,000 The following errors in the corporation's accounting have been discovered: 1. Keane collected $3,400 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. 2. The inventory amount reported included $2,200 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $800 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3. Sales for the first day in January 2018 in the amount of $10,000 were entered in the sales journal as of December 31, 2017. Of these, $5,500 were sales on account and the remainder were cash sales. 4. Cash, collected in December 2017, but entered as received in January 2018 totaled $1,700. Of this amount, $1,470 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. Cash of $3,000 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $5,700, on which a cash discount of 1% was taken. State the net effect of your adjustments on Blossom's retained earnings balance. to retained earnings $