The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows. The following errors in the corporation's accounting have been discovered: January 2015 cash disbursements entered as of December 2014 included payments of accounts payable in the amount of $43,700, on which a cash discount of 2% was taken. The inventory included $29,100 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,800 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 2015 in the amount of $34,660 were entered in the sales journal as of December 31, 2014. Of these, $30,840 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2015 and entered as of December 31, 2014, totaled $39,226. Of this amount, $27,636 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. 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.) 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.) State the net effect of your adjustments on Allessandro Scarlatti Company's retained earnings balance