E5-9 (Current Assets and Current Liabilities) The current assets and current liabilities sections of the statement of financial position of Jin Liu Company appear as follows (amounts in thousands). JIN LIU COMPANY STATEMENT OF FINANCIAL POSITION (PARTIAL) DECEMBER 31, 2015 Inventory V171,000 Notos payablo Accounts receivable V89,000 Accounts payable Less: Allowance for doubtful accounts 7,000 82,000 Propaid expenses 9,000 Cash 40,000 V302,000 V 67,000 61,000 V128,000 The following errors in the corporation's accounting have been discovered: 1. January 2016 cash disbursements entered as of December 2015 included payments of accounts payable in the amount of 35,000, on which a cash discount of 2% was taken. 2. The inventory included Y27,000 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, V10,000 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 2016 in the amount of Y30,000 were entered in the sales book as of December 31, 2015. Of these, Y21,500 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2016 and entered as of December 31, 2015, totaled Y35,324. Of this amount, V23,324 was received on account after cash discounts of 2% had been deducted, the remainder represented the proceeds of a bank loan. Instructions (a) Restate the current assets and current liabilities sections of the statement of financial position in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (b) State the net effect of your adjustments on Jin Liu Company's retained earnings balance