Question 6 of 7 - /20 View Policies Current Attempt in Progress The current assets and current liabilities sections of the statement of financial position of Ayayai Corp. are as follows: AYAYAI CORP. Statement of Financial Position (partial) December 31, 2020 Cash $41,000 Accounts payable $62,000 Accounts receivable $90,000 Notes payable 68,000 Allowance for doubtful accounts 7,100 82,900 Inventory 179,000 Prepaid expenses 8,110 $311,010 $130,000 The following errors have been discovered in the corporation's accounting: 1. January 2021 cash disbursements that were entered as at December 2020 included payments of accounts payable in the amount of $36,000. Question 6 of 7 - /20 2. The inventory balance is based on an inventory count that included $28,000 of merchandise that was received at December 31 but with no purchase invoices received or entered. Of this amount, $11,000 was received on consignment; the remainder was purchased f.o.b. destination. 3. Sales for the first four days of January 2021 in the amount of $31,000 were entered in the sales book as at December 31, 2020. Of these, $22,500 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2021 and entered as at December 31, 2020, totalled $33,324. Of this amount, $24,304 was received on account; the remainder was proceeds on a bank loan. (the amount owed to the bank for January 2021 was included as part of the Notes Payable account.) Restate the statement of financial position's current assets and current liabilities sections. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 5,752.) AYAYAI CORP. Partial Statement of Financial Position December 31, 2020 Current Assets Cash $ 3 Question 6 of 7 - /20 III Accounts Receivable $ Less Allowance for Doubtful Accounts Inventory Prepaid Expenses Total Current Assets $ Current Liabilities Accounts Payable $ 3 Notes Payable Total Current Liabilities $ e Textbook and Media Question 6 of 7 - /20 iii e Textbook and Media List of Accounts Calculate the net effect of your adjustments on Ayayai Corp.'s retained earnings balance. Retained earnings balance increased v by$ e Textbook and Media List of Accounts Save for Later Last saved 13 days ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Question 6 of 7 - /20 View Policies Current Attempt in Progress The current assets and current liabilities sections of the statement of financial position of Ayayai Corp. are as follows: AYAYAI CORP. Statement of Financial Position (partial) December 31, 2020 Cash $41,000 Accounts payable $62,000 Accounts receivable $90,000 Notes payable 68,000 Allowance for doubtful accounts 7,100 82,900 Inventory 179,000 Prepaid expenses 8,110 $311,010 $130,000 The following errors have been discovered in the corporation's accounting: 1. January 2021 cash disbursements that were entered as at December 2020 included payments of accounts payable in the amount of $36,000. Question 6 of 7 - /20 2. The inventory balance is based on an inventory count that included $28,000 of merchandise that was received at December 31 but with no purchase invoices received or entered. Of this amount, $11,000 was received on consignment; the remainder was purchased f.o.b. destination. 3. Sales for the first four days of January 2021 in the amount of $31,000 were entered in the sales book as at December 31, 2020. Of these, $22,500 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2021 and entered as at December 31, 2020, totalled $33,324. Of this amount, $24,304 was received on account; the remainder was proceeds on a bank loan. (the amount owed to the bank for January 2021 was included as part of the Notes Payable account.) Restate the statement of financial position's current assets and current liabilities sections. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 5,752.) AYAYAI CORP. Partial Statement of Financial Position December 31, 2020 Current Assets Cash $ 3 Question 6 of 7 - /20 III Accounts Receivable $ Less Allowance for Doubtful Accounts Inventory Prepaid Expenses Total Current Assets $ Current Liabilities Accounts Payable $ 3 Notes Payable Total Current Liabilities $ e Textbook and Media Question 6 of 7 - /20 iii e Textbook and Media List of Accounts Calculate the net effect of your adjustments on Ayayai Corp.'s retained earnings balance. Retained earnings balance increased v by$ e Textbook and Media List of Accounts Save for Later Last saved 13 days ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes