Need Accounting help with assets and liabilities

The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows.

DECEMBER 31, 2014

Cash   $ 44,980 Accounts payable $ 62,970
Accounts receivable $93,380              Notes payable 71,970
 Less: Allowance for doubtful accounts 7,610 85,770   $134,940
Inventory   179,050    
Prepaid expenses   9,600    


The following errors in the corporation’s accounting have been discovered:

1. January 2015 cash disbursements entered as of December 2014 included payments of accounts payable in the amount of $41,500, on which a cash discount of 2% was taken.
2. The inventory included $31,500 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,400 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 2015 in the amount of $32,250 were entered in the sales journal as of December 31, 2014. Of these, $22,810 were sales on account and the remainder were cash sales.
4. Cash, not including cash sales, collected in January 2015 and entered as of December 31, 2014, totaled $37,212. Of this amount, $25,872 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

Calculate the following adjusted balances.



Accounts Receivable




Accounts Payable


Notes Payable