The current assets and current liabilities sections of the balance sheet of Marin Company appear as follows. MARIN COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 41,300 Accounts receivable $96,300 Less: Allowance for doubtful accounts 7,840 88,460 Inventory 169,820 Prepaid expenses 8,620 $308,200 Accounts payable Notes payable $ 58,430 63,280 $121,710 The following errors in the corporation's accounting have been discovered: 1. 2. January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $41,800, on which a cash discount of 2% was taken. The inventory included $28,590 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,340 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 2021 in the amount of $28,680 were entered in the sales journal as of December 31, 2020. Of these, $21,510 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. 3. 4. (a 1) Your answer is correct. Calculate the following adjusted balances. Cash $ 39574 Accounts Receivable $ 98790 Inventory $ 158480 Accounts Payable $ 117480 Notes Payable $ 51280 e Textbook and Media List of Accounts Attempts: 2 of 3 used 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.) MARIN COMPANY Balance Sheet (Partial) December 31, 2020 V Asset Current Assets Cash $ 39,574 Accounts Receivable $ 98,790 Less : Allowance for Doubtful Accounts (7,840) i 90,950 Inventory 158,48C Prepaid Expenses 8,620 Total Current Assets $ 297,624 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 117,48C Notes Payable 51,280 Total Current Liabilities $ 168,76C (b) State the net effect of your adjustments on Marin Company's retained earnings balance. Decrease to retained earnings $ e Textbook and Media