The current assets and current liabilities sections of the balance sheet of Cullumber Company appear as follows. CULLUMBER COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 48,600 Accounts payable $ 65,590 Accounts receivable $95,200 Notes payable 73,440 Less: Allowance for doubtful accounts 8,060 87,140 $139,030 Inventory 167,370 Prepaid expenses 8,130 $311,240 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 $43,900, on which a cash discount of 2% was taken. 2. The inventory included $29,940 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,460 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 $30,260 were entered in the sales journal as of December 31, 2020. Of these, $20,000 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 $35,520. 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. Part 1 Calculate the following adjusted balances. Cash Accounts Receivable $ Inventory " Accounts Payable $ Notes Payable Part 2 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.) CULLUMBER COMPANY Balance Sheet (Partial) Asset Liabilities and Stockholders' Equity Part 3 State the net effect of your adjustments on Cullumber Company's retained earnings balance. to retained earnings $ The current assets and current liabilities sections of the balance sheet of Cullumber Company appear as follows. CULLUMBER COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 48,600 Accounts payable $ 65,590 Accounts receivable $95,200 Notes payable 73,440 Less: Allowance for doubtful accounts 8,060 87,140 $139,030 Inventory 167,370 Prepaid expenses 8,130 $311,240 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 $43,900, on which a cash discount of 2% was taken. 2. The inventory included $29,940 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,460 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 $30,260 were entered in the sales journal as of December 31, 2020. Of these, $20,000 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 $35,520. 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. Part 1 Calculate the following adjusted balances. Cash Accounts Receivable $ Inventory " Accounts Payable $ Notes Payable Part 2 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.) CULLUMBER COMPANY Balance Sheet (Partial) Asset Liabilities and Stockholders' Equity Part 3 State the net effect of your adjustments on Cullumber Company's retained earnings balance. to retained earnings $