7. BDV Company has completed the statement of comprehensive income and statement of financial position (sumamrized and uncorrected, shown below) at December 31, 2016. Subsequently during an audit, the following items were discovered: a. Expenses amounting to P 7,000 were not accrued b. A conditional sale on credit for P 12,000 was recorded on December 31, 2016. The goods which cost P 8,000 were included in the ending inventory they had not been shipped because the customer's address was not known and the credit had not been approved. Ownership had not passed to the buyer. c. Merchandise purchased on December 31, 2016 on credit for P 6,000 was included in the ending inventory because the goods were on hand. A purchase was not recorded because the accounting department had not received the invoice from the vendor d. The ending inventory was overstated by P 15,000 because of an addition error on the inventory sheet. e. A sales return on account ) on December 31, 2016 was not recorded The sales amount was P 15,000 and cost was P 8,000. The ending inventory did not include the goods returned REQUIRED: Set up a schedule, make the corrections an derived the corrected amounts. Indicate increases and decreases for each transaction. Explain any assumptions made with respect to the doubtful items. Disregard income taxes. ITEMS FOR CORRECTIONS (c) (d) Corrected Amounts Uncorrected Amounts (a) (0) STATEMENT OF COMPREHENSIVE INCOME Sales Revenue Cost of Goods Sold Gross Margin Expenses Net Income 90,000 50 000 40,000 30 000 10.000 STATEMENT OF FINANCIAL POSITION Accounts Receivable Inventory Remaining assets Accounts Payable Renaining Liabilities Share capital ordinary Retained Earrings 42.000 20.000 30.000 11,000 6.000 60.000 15.000