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Pharoah Company Balance Sheet (Partial) December 31, 2025 \begin{tabular}{|c|c|c|} \hline Cash , & & $43,100 \\ \hline Accounts receivable & $91,400 & \\ \hline Less: Allowance for doubtful accounts & 8,290 & 83,110 \\ \hline Inventory & & 165,030 \\ \hline \multirow[t]{2}{*}{ Prepaid expenses } & & 9,460 \\ \hline & & $300,700 \\ \hline \end{tabular} he 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 $42,300, on which a cash discount of 2% was taken. 2. The inventory included $31,310 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,000 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 $31,970 were entered in the sales journal as of December 31 , 2025. Of these, $21,740 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 $34,344. Of this amount, $22,344 was received on account after cash ciscounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. Pharoah Company Balance Sheet (Partial) December 31, 2025 Asset Current Assets Cash $ Accounts Receivable $ Less Allowance for Doubtful Accounts Inventory Prepaid Expenses Total Current Assets $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Notes Payable Total Current Liabilities

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