Question 17 --/1 View Policies Current Attempt in Progress The current assets and current liabilities sections of the balance sheet of Ivanhoe Co. appear as follows. Ivanhoe Co. Balance Sheet (Partial) As of December 31, 2017 Cash $19,000 Accounts payable $28,100 Accounts receivable $39,500 Notes payable 15,400 Less: Allowance for doubtful accounts 2,000 37,500 Unearned revenue 2,800 Inventory 62,500 Total current liabilities $46,300 Prepaid expenses 6,300 Total current assets $125,300 The following errors in the corporation's accounting have been discovered: 1. Keane collected $4,500 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. 2. The inventory amount reported included $4,100 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10,n/30. 3. Sales for the first day in January 2018 in the amount of $11,000 were entered in the sales journal as of December 31, 2017. Of these, $6,200 were sales on account and the remainder were cash sales. 4. Cash, collected in December 2017, but entered as received in January 2018 totaled $3,200. Of this amount, $2,156 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. 5. Cash of $5,300 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 $6,900, on which a cash discount of 1% was 6. taken. (2) - Your answer is partially correct. 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, 2017 Asset Current Assets Cash Accounts Receivable Less Allowance for Doubtful Accounts Inventory Prepaid Expenses Total Current Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Notes Payable Total Current Liabilities e Textbook and Media (a1) Your answer is correct. Calculate the following adjusted balances. Cash 18931 Accounts Receivable $ 31100 Inventory S 60900 Accounts Payable $ 37500 Notes Payable $ 10100 Unearned Revenue $ 7300 e Textbook and Media Attempts: unlimited Your answer is partially correct. Try again. State the net effect of your adjustments on Allessandro Scarlatti Company's retained earnings balance. Decrease to retained earnings Show transcribed image text