How is the customer sales discount taken in december calculated? (shown as 58) in solution

The current assets and current liabilities sections of the balance sheet of Crane Co. appear as follows. Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets Crane Co. Balance Sheet (Partial) As of December 31, 2017 $18,700 Accounts payable $40,400 Notes payable 1,600 38,800 Unearned revenue 62,000 Total current liabilities 5,900 $125,400 $27,700 15,400 3,700 $46,800 The following errors in the corporation's accounting have been discovered: 1. 2. 3. Keane collected $5,400 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. The inventory amount reported included $2,700 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,200 had been received on consignment; the remainder was purchased f.o.b.destination, terms 2/10,n/30. Sales for the first day in January 2018 in the amount of $12,300 were entered in the sales journal as of December 31, 2017. Of these, $5,700 were sales on account and the remainder were cash sales. Cash, collected in December 2017, but entered as received in January 2018 totaled $4,100. Of this amount, $2,842 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. Cash of $3,600 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 $7,800, on which a cash discount of 1% was taken. 4. 5. 6. Solution Assistance Used $1,258 Adjustment to retained earnings balance: Add: December cash sales recorded in January ($4,100 - $2.842) Deduct: January sales Unearned Revenue January purchase discounts taken ($7,800 x 1%) December purchases ($2,700 - $1,200) Customer sales discounts taken in December Consignment inventory Change (decrease) to retained earnings $12.300 5,400 78 1,500 58 1,200 (20,536) $(19,278)