Pharoah Company Balance Sheet (Partial) December 31, 2025 Cash $43,100 Accounts payable $63,430 Accounts receivable $91,400 Notes payable 63,510 Less: Allowance for doubtful accounts 8,290 83,110 $126.940 Inventory 165,030 Prepaid expenses 9.460 $300,700 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $42,300, on which a cash discount of 2% was taken. The inventory included $31,310 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,000 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2026 in the amount of $31,970 were entered in the sales journal as of December 31, 2025. Of these, $21,740 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $34,344. Of this amount, $22,344 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. Current Assets Cash Accounts Receivable Less Allowance for Doubtful Accounts Inventory Prepaid Expenses Total Current Assets Pharoah Company Balance Sheet (Partial) December 31, 2025 Asset $ $ $ Current Liabilities Liabilities and Stockholders' Equity Accounts Payable Notes Payable Total Current Liabilities $