Question

Question 1 of 2 < > Pronghorn Company Balance Sheet (Partial) December 31, 2025 Cash $49,500 Accounts payable $56,810 Accounts receivable $98,700 Notes payable 70,790 Less: Allowance for doubtful accounts 7,760 90,940 $127,600 Inventory 181,950 Prepaid expenses 8,790 $331,180 -/15 The following errors in the corporation's accounting have been discovered: 1. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $43,500, on which a cash discount of 2% was taken. 2. The inventory included $29,640 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,950 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 2026 in the amount of $30,890 were entered in the sales journal as of December 31, 2025. Of these, $21,670 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $36,794. Of this amount, $24,794 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

          Question 1 of 2
<
>
Pronghorn Company
Balance Sheet (Partial)
December 31, 2025
Cash
$49,500
Accounts payable
$56,810
Accounts receivable
$98,700
Notes payable
70,790
Less: Allowance for doubtful accounts
7,760
90,940
$127,600
Inventory
181,950
Prepaid expenses
8,790
$331,180
-/15
The following errors in the corporation's accounting have been discovered:
1. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of
$43,500, on which a cash discount of 2% was taken.
2. The inventory included $29,640 of merchandise that had been received at December 31 but for which no purchase invoices
had been received or entered. Of this amount, $12,950 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 2026 in the amount of $30,890 were entered in the sales journal as of December 31,
2025. Of these, $21,670 were sales on account and the remainder were cash sales.
4. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $36,794. Of this
amount, $24,794 was received on account after cash discounts of 2% had been deducted; the remainder represented the
proceeds of a bank loan.

question 1 of 2 pronghorn company balance sheet partial december 31 2025 cash 49500 accounts payable 56810 accounts receivable 98700 notes payable 70790 less allowance for doubtful accounts 32922

Added by Denise V.

Question

Please give Ace some feedback