The current assets and current liabilities sections of the balance sheet of Skysong Company appear as follows.

SKYSONG COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020
Cash				$ 46,100		Accounts payable		$ 56,560
Accounts receivable		$ 95,900				Notes payable		67,760
Less: Allowance for doubtful accounts		8,850		87,050				$ 124,320
Inventory				163,710
Prepaid expenses				9,840
				$ 306,700

The following errors in the corporations accounting have been discovered:

1.		January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $39,900, on which a cash discount of 2% was taken.
2.		The inventory included $ 31,250 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $ 12,200 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3.		Sales for the first four days in January 2021 in the amount of $ 28,630 were entered in the sales journal as of December 31, 2020. Of these, $ 23,360 were sales on account and the remainder were cash sales.
4.		Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $ 35,030. Of this amount, $ 23,030 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

Calculate the following adjusted balances.

Cash		$
Accounts Receivable		$
Inventory		$
Accounts Payable		$
Notes Payable		$

Create Balance sheet& 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 Skysong Companys retained earnings balance.

IncreaseDecrease to retained earnings

$