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 $39,700, on which a cash discount of 2% was taken.
2. The inventory included $29,650 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,570 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 2018 in the amount of $28,600 were entered in the sales journal as of December 31, 2017. Of these, $22,130 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 $35,422. Of this amount, $23,422 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.