The current assets and current liabilities sections of the balance sheet of Ivanhoe Company appear as follows. Accounts payable Notes payable IVANHOE COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 41,700 Accounts receivable $96,400 Less: Allowance for doubtful accounts 7,080 89,320 Inventory 177,510 Prepaid expenses 8,980 $317,510 $ 65,040 70,200 $135,240 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 $43,500, on which a cash discount of 2% was taken. The inventory included $31,970 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,290 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 $30,560 were entered in the sales journal as of December 31, 2020. Of these, $21,170 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 $33,756. Of this amount, $21,756 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. 3. 4. Calculate the following adjusted balances. Cash 44,004 Accounts Receivable si 90,350 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.) IVANHOE COMPANY Balance Sheet (Partial) Asset Liabilities and Stockholders' Equity State the net effect of your adjustments on Ivanhoe Company's retained earnings balance. O t o retained earnings $