View Policies Current Attempt in Progress The current assets and current liabilities sections of the balance sheet of Pearl Company appear as follows. PEARL COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $43.900 Accounts receivable $97,700 Less: Allowance for doubtful accounts 7,850 89,850 Inventory 164.640 Prepaid expenses 8.900 $307,290 Accounts payable Notes payable $ 67,020 67,660 $134,680 1. 2. The following errors in the corporation's accounting have been discovered: January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $41.500, on which a cash discount of 2% was taken 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.o.b.destination, terms 2/10,n/30. Sales for the first four days in January 2021 in the amount of $32,350 were entered in the sales journal as of December 31, 2020. Of these, $20,610 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 $35,226. 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. 3. Calculate the following adjusted balances Cash S Accounts Receivable S Inventory S Accounts Payable S Notes Payable S List of Accounts 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) PEARL COMPANY Balance Sheet (Partial) Asset S Liabilities and Stockholders' Equity > S State the net affect of your adjustments on Pearl Company's retained earnings balance to retained earnings S List of Accounts