Determine the adjusted balance of Inventory. PROBLEM NO. 2 - Computation of adjusted inventory and related accounts Bulls Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2018: Inventory at December 31, 2018 (based on physical count on Dec. 31, 2018) P 980,000 Accounts payable at December 31, 2018 586,000 Net sales (sales less sales returns) 10,048,000 Additional information follows: a. Goods held on consignment from Chicago to Bulls amounting to P9,000, were included in the physical count of goods in Bulls' warehouse on December 31, 2018, and in accounts payable at December 31, 2018. b . Retailers were holding P50,000, at cost, of goods on consignment from Bulls, at their stores on December 31, 2018. c. Included in the physical count were goods billed to a customer FOB shipping point on December 31, 2018. These goods had a cost of P31,000 and were billed at P40,000. The shipment was on Bulls' loading dock waiting to be picked up by the common carrier. d. P15,000 worth of parts which were purchased from Deng Co. and paid for in December 2018 were sold in the last week of 2018 and appropriately recorded as sales of P21,000. The parts were included in the physical count on December 31, 2018, because the parts were on the loading dock waiting to be picked up by the customer. e. Goods were in transit from a vendor to Bulls. on December 31, 2018. The invoice cost was P71,000, and the goods were shipped FOB shipping point on December 29, 2018. f. Work in process inventory costing P30,000 was sent to an outside processor for plating on December 30, 2018. g. Goods returned by customers and held pending inspection in the returned goods area on December 31, 2018, were not included in the physical count. On January 8,'2019, the tools costing P32, 000 were inspected and returned to' inventory. Credit memos totaling P47, 000 were issued to the customers on the same date. Goods shipped to a customer FOB destination on December 26,2018, were in transit at December 31, 2018, and had a cost of P21, 000 Upon notification of receipt by the customer on Januar) 2,2019, Bulls issued a sales mvoice for P42, 000. Goods, with an invoice cost of P27000, received from a'vendor at 5:00 p m. on December 31, 2018, were recorded on a receiving report dated January 2, 2019." The goods were not included in the physical count, but the invoice was included in accounts payable at December 31,2018. ' 4 . Goods received from a vendor on December 26, 2018, were included in the physical count However, the related P56, 000 vendor invoice was not included in accounts payable at December 31, 2018, because the accounts payable copy of the receiving raport was lost. On January 3, 2019, a monthly freight bill in the amount of P6, 000 was received. The bill specifically related to merchandise purchased 1n December 2018, one-half of which was sll in the inventory at December 31,2018. The height charges Were not included' In either the inventory or accounts payable at December 31,2018." ' REQUIRED: , 1. Determine the following as of and for the year. ended December 31, 2018: a. Inventory b. ' " Net sales - c'. l ' Accounts payable