The current assets and current liabilities sections of the balance sheet of Wildhorse Co. appear as follows. | Wildhorse Co. Balance Sheet (Partial) As of December 31, 2017 | | Cash | | | | $18,800 | | Accounts payable | | $28,300 | | Accounts receivable | | $39,500 | | | | Notes payable | | 13,600 | | Less: Allowance for doubtful accounts | | 2,200 | | 37,300 | | Unearned revenue | | 2,500 | | Inventory | | | | 61,500 | | Total current liabilities | | $44,400 | | Prepaid expenses | | | | 5,100 | | | | | | Total current assets | | | | $122,700 | | | | | The following errors in the corporations accounting have been discovered: | 1. | | Keane collected $4,400 on December 20, 2017 as a down payment for services to be performed in January, 2018. The companys controller recorded the amount as revenue. | | 2. | | The inventory amount reported included $3,500 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,900 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. | | 3. | | Sales for the first day in January 2018 in the amount of $12,300 were entered in the sales journal as of December 31, 2017. Of these, $5,600 were sales on account and the remainder were cash sales. | | 4. | | Cash, collected in December 2017, but entered as received in January 2018 totaled $4,000. Of this amount, $3,332 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. | | 5. | | Cash of $4,500 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. | | 6. | | January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $6,800, on which a cash discount of 1% was taken. | | | |  |
