Answer:
a. Francis Equipment Co
   Adjusting entries
   December 31 2017
1. Revenues                                        Debit       $ 28,000
   Cash                                                Credit                                 $ 28,000
To reverse the cash sales recorded in December
2. Account receivable                       Debit         $ 18,000
    Sales Discounts                             Credit                                  $     360
    Cash                                                Credit                                 $ 17,640
To reverse the collections from customers and sales discounts allowed
                     
3. Cash                                                 Debit       $ 22,450
    Purchase Discounts                        Debit        $     250  
    Accounts payable                            Credit                                $  22,700 
To reverse the payments made and discounts  availed
4. No entry for inventory                  
b. Francis Equipment company managed to show a higher retained earnings of $ 28,110 
Explanation:
Computation for change in balance sheet
Cash sales reversed                                                              $ 28,000 
Sales discounts allowed reversed                                         $     360
Purchase discounts availed reversed                                    <u>$  ( 250)</u>
Net items affecting income statement                                $ 28,110
The income was higher by $ 28,110, so correspondingly the retained earnings account was also higher by $ 28,110
No entry is required for inventory since it was based on an inventory count conducted on December 31 and a periodic inventory system is in use.