BENGUET Company of Makati uses a periodic inventory system and a fiscal year ending June 30. The company makes all its merchandise purchases and sales on credit. The following information is available from the company's inventory records: Beginning inventory, July 1, 2011 P 400,000 Purchases, July 1, 2011 to June 30, 2012 1,800,000 Sales (Gross profit at 40% based on sales) 4,210,000 Ending inventory, June 30, 2012 per physical count on the 320,000 same date Accounts receivables 660,000 Accounts payable 525,000 The following transactions occurred near the end of the fiscal year: a. Goods costing P80,000 received on June 27 were recorded as purchases twice. b. Goods shipped by rail from Makati to a Naga customer were recorded as a sale on June 29 at P120,000. The goods were shipped on June 29, FOB Naga. Goods were still in transit as of the fiscal year end. c. Goods were received on July 2 and were recorded as purchase on the same date. The supplier's invoice indicates however that goods were shipped on June 28 and that the invoice price of P72,000 appropriately included the P2,000 freight cost prepaid by the supplier in behalf of Benguet Company. d. Goods costing P90,000 were recorded as purchases on July 5. A Legaspi City supplier shipped the goods to Makati by rail, FOB Legaspi on June 30. e. Goods costing P120,000 held by Kabalen Company on consignment were not counted. Benguet Company recorded the related sales when it shipped the goods to Kabalen on June 23. f. Goods costing P76,000 were received on June 18 and returned for a credit on June 20 because they were not satisfactory. Benguet Company did not record yet these events. Required: 9. What is the correct inventory balance as of June 30, 2012? A. 584,000 C. 672,000 B. 602,000 D. 674,000 10. What is the correct cost of sales for the fiscal year ended June 30, 2012? A. 1,608,000 C. 1,532,000 B. 1,530,000 D. 1,604,000 11. What is the adjusted balance of Accounts Receivable as of December 31, 2012? 660,000 C. 420,000 B. 540,000 D. 340,000 12. What is the adjusted balance of Accounts Payable as of December 31, 2012? A. 531,000 C. 459,000 B. 529,000 D. 607,000 13. What is the net adjustment to net income as a result of the audit? A. 48,000 decrease C. 28,000 increase B. 30,000 increase D. 52,000 decrease