8. In your review of Mermaid Company's draft financial statements you found that the reported inventory on December 31, 2012, of P1,200,000 was based on a physical count conducted on December 28, 2012. You also discovered the following items: Merchandise costing P175,000, shipped to Mermaid Company FOB shipping point by Jetsam Company on December 31, 2012 and was scheduled to arrive at January 6, 2013. Merchandise costing P100,000, were sent out on consignment to Flounders Company on December 22, 2012. 75% of all the goods sent out remain unsold at December 31, 2012. Cost of P30,000 was incurred in delivering the goods to Flounders Company. The goods sent out were marked to sell at P210,000 Merchandise costing P75,000 was shipped by Mermaid Company FOB destination to Ursula Company on December 27, 2012. Ursula Company was scheduled to receive the merchandise on January 3, 2013. Merchandise costing P60,000 included in the count were identified as goods under consignment from Sebastian Company. The amount to be reported as Inventory in Mermaid Company's December 31, 2012 balance sheet is a. 1,412,500 b. 1,390,000 c. 1,487,500 d. 1,465,000