E5-6B (L02,3) (Corrections of a Balance Sheet) The bookkeeper for Odie Company has prepared the following balance sheet as of June 30, 2017.

The following additional information is provided.

1. Cash includes $800 in a petty cash fund and $14,000 in a bond sinking fund.

2. The net accounts receivable balance is comprised of the following three items: (a) accounts receivabledebit balances $96,000; (b) accounts receivablecredit balances $8,000; (c) allowance for doubtful accounts $7,000.

3. Merchandise inventory costing $11,200 was shipped out on consignment on June 30, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of $11,200 were recognized on these consigned goods.

4. Equipment had a cost of $260,000 and an accumulated depreciation balance of $73,000.

5. Taxes payable of $21,500 were accrued on June 30. Odie Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the taxes payable amount.

ODIE COMPANY BALANCE SHEET AS OF JUNE 30, 2017 Cash Accounts receivable (net) Inventories $26,500 Notes and accounts payable $126,000 50,000 261,500 $437,500 1,000 Long-term liabilities 3,000 Stockholders' equity 187,000 Goodwill $437,500