9. Mel Industries showed income before income taxes of P250. on December 31. 2D1tl. Dn your year-end verification of the accounts. you discovered the Following: a. Pl worth of merchandise was purchased in 2D14 and included in the ending inventory. However. the purchase was recorded only in 21115. b. A merchandise shipment valued at Pl was properly recorded as purchases at year-end. Since the merchandise was still at the port area. they were inadvertently emitted from the inventory balance at December 31. 2D14. c. The company records sales inclusive of value-added tax {VAT} and charges sales upon remittance to the SIR. VAT for December zoo? amounting to P was remitted to the EEIR in January 2015. cl. Rental of Pa on an equipment, applicable for six monthsr was received on November 1. 2014. The entire amount was reported as income upon receipt. e. Insurance premium covering the period from july 1. 21114 to july 1. 20115. amounting to P1201101] was paid and recorded as expense in July 2D14. The company did not make any adjustment at the end of the year