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Tom Inc. performs a physical inventory count on 12/31/2021 a…

Tom Inc. performs a physical inventory count on 12/31/2021 and accidentally double counts a room that has $35,000 of inventory in it (so the inventory in this room gets counted twice)! This mistake is not repeated when they perform the physical inventory count at the end of the following year (12/31/2022), which is done correctly. Assuming that Tom Inc. reports the following information on their 2021 and 2022 financial statements:   As reported:                                             12/31/2021                  12/31/2022 Ending Inventory                                      $200,000                     $300,000 Cost of Goods Sold                                  $500,000                     $450,000 Net Income                                               $140,000                     $170,000 Retained Earnings                                     $500,000                     $670,000   Please indicate what the corrected 2021 Retaining Earnings total would be if the mistake had not been made?

Bonus #1:     The following accounts were extracted from the…

Bonus #1:     The following accounts were extracted from the unadjusted trial balance at 12/31:                                                                                       Debit                           Credit              Accounts Receivable                                       $2,000,000             Allowance for Uncollectible Accounts                                              $16,000             Net credit sales                                                                                    $6,000,000   They estimate that 3% of gross ending accounts receivable will become uncollectible.  After adjustment at 12/31, the allowance for uncollectible accounts should have a credit balance of?