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The current assets and current liabilities sections of the balance sheet of Buffalo Company appear as follows. BUFFALO COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020

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The current assets and current liabilities sections of the balance sheet of Buffalo Company appear as follows. BUFFALO COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $50,000 Accounts payable $ 57,390 Accounts receivable $92,000 Notes payable 71.770 Less: Allowance for doubtful accounts 7.220 84,780 $129,160 Inventory 160,190 Prepaid expenses 8,170 $303,140 The following errors in the corporation's accounting have been discovered: 1. January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $42,300, on which a cash discount of 2% was taken. 2. The inventory included $28,040 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,070 had been received on consignment; the remainder was purchased fo.b. destination, terms 2/10,n/30 3. Sales for the first four days in January 2021 in the amount of $29.450 were entered in the sales Journalas of December 31 2020. Of these, $22,320 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 $36,794. Of this amount, $24,794 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 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.) BUFFALO COMPANY Balance Sheet (Partial) Asset Liabilities and Stockholders' Equity State the net effect of your adjustments on Buffalo Company's retained earnings balance. to retained earnings $

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