Exercise 5-9 The current assets and current liabilities sections of the balance sheet of Riverbed Company appear as follows RIVERBED COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 67,020 67,660 $134,680 Cash $43,900 Accounts payable Accounts receivable $97,700 Notes payable Less: Allowance for doubtful accounts Inventory Prepaid expenses 7,850 89,850 164,640 8,900 307,290 The following errors in the corporation's accounting have been discovered 1. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $41,500, on which a cash discount of 2% was taken. 2. The inventory included $27,740 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,190 had been received on consignment; the remainder was purchased f..b. destination, terms 2/10, n/30 3. Sales for the first four days in January 2018 in the amount of $32,350 were entered in the sales journal as of December 31, 2017. Of these, $20,610 were sales on account and the remainder were cash sales 4. Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $35,226. Of this amount, $23,226 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. Your answer is partially correct. Try again Calculate the following adjusted balances Calculate the following adjusted balances. Cash 37604 Accounts Receivable 99851 Inventory 152640 Accounts Payable 126070 Notes Payable 57470 LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. 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.) December 31, 2017 Asset Current Assets cash 37604 accounts receivable 99851 Less 7850 92001 Allowance for Doubtful Accounts inventory 152640 prepaid expenses 8900 Total Current Assets 291145 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 126070 Notes Payable 57470 Total Current Liabilities 183540 Your answer is correct. State the net effect of your adjustments on Rive mpany s retained earnings balance Decrease to retained earnings $