250,000 10,000 4,000 On December 31, 2016, JC computed an ending inventory valuation of P 250,000 based on a periodic inventory system. The accounts for 2016 have been adjusted and closed. Subsequently, the independent auditor located several discrepansices in the 2016 ending inventory. These were discussed with the company accountant, who then prepared the following schedule: a. Merchandise in store (50% above cost) b. Merchandise on consignment at sales price (inclduing markup of 60% on selling price) c. Goods held on cosnignment from Dad's Electonics at sales price (sales commission, 20% of sales price included) d. Goods purchased, in transit (shipped FOB shipping point, estimated freight not included. P 800) invoice price e. Goods out on approval , sales price, P 2,500. Cost P 1,000 Total Inventory, as corrected Avergae Income Tax Rate : 40% REQUIRED : 1. The auditor did not agree with the "corrected"inventory amount of P 271,500. Compute the correct ending inventory amount. (Provide computation) by modifying the corrected balance of P 271,500 2. List the items (accounting elements in the statement of comprehensive income, statement of financial position for 2016 that are misstated and should be corrected for the above errors; give the amount of the error in the balance of each item affected. 3. The accounts have been closed for 2016. What will be the correcting entry in January 2017 ? Provide the required correcting entry 5,000 2,500 271,500

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