Please help me with solving the last part of this problem asking for the effect on Retained Earnings. Thank you.

The current assets and current liabilities sections of the balance sheet of Ivanhoe Company appear as follows. IVANHOE COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 40,200 Accounts payable $ 62,590 Accounts receivable $90,900 Notes payable 71,980 Less: Allowance for doubtful accounts 7,330 83,570 $134,570 172,890 Inventory Prepaid expenses 9,720 $306,380 Calculate the following adjusted balances. Cash $ 38230 Accounts Receivable $ $ 91340 Inventory A 160220 Accounts Payable 119660 Notes Payable $ 59980 Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) IVANHOE COMPANY Balance Sheet (Partial) December 31, 2020 Asset Current Assets Cash $ 38230 Accounts Receivable 91340 Less Allowance for Doubtful Accounts 7330 84010 Inventory 160220 Prepaid Expenses 9720 Total Current Assets 292180 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ $ 119660 TVANHOE COMPANY Balance Sheet (Partial) December 31, 2020 Asset Current Assets Cash $ 38230 Accounts Receivable $ 91340 Less : Allowance for Doubtful Accounts 7330 84010 Inventory 160220 Prepaid Expenses 9720 Total Current Assets 292180 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 119660 Notes Payable 59980 Total Current Liabilities $ 179640 (b) Your answer is partially correct. State the net effect of your adjustments on Ivanhoe Company's retained earnings balance. Decrease to retained earnings $ 58910 eTextbook and Media Assistance Used List of Accounts Save for Later Attempts: 1 of 4 used Submit