7) After the issuance of its 2015 financial statements, Bobtail, Inc. discovered a computational error of P150,000 in the calculation of its December 31, 2015 inventory. The error resulted in a P150,000 overstatement in the cost of goods sold for the year ended December 31, 2015. In October 2016, Bobtail paid the amount of P500,000 in settlement of litigation instituted against it during 2015. Ignoring income taxes. In the 2016 financial statements, the December 31, 2015 retained earnings balance, as previously reported, should be adjusted by a A. 150,000 credit B. 150,000 debit C. 500,000 debit D. 500,000 credit 8) Jags Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In 2023, Jags decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been P380,000 instead of P285,000. In 2023, bad debt expense will be P120,000 instead of P90,000. If Jags tax rate is 35%, what amount should be adjusted to the beginning balance of the retained earnings in 2023? A. None B. 64,600 c. 95,000 D. 120,000 Use the following information for the next two (2) questions: Blood Hunter Company purchased pressing machinery that cost P54,000 on January 4, 2013. The entire cost was recorded as an expense. The machinery has a nine-year life and a P50,400 depreciable cost. The error was discovered on December 20, 2015, 9) Ignoring income tax consideration, Blood Hunter's statement of comprehensive income for the year ended December 31, 2015 should show depreciation expense in the amount of 10) Before the correction was made, the January 2, 2015, retained earnings was understated by 11) Wirehair Company's statements for 2014 and 2015 included the following errors: December 31, 2014 inventory understated 2,000,000 December 31, 2015 inventory overstated 1,000,000 Depreciation for 2014 understated 400,000 Depreciation for 2015 overstated 800,000 How much should retained earnings be retroactively adjusted on January , 2016