Determine the following as a result of your audit at the end of 2020: (Please show your solution) 1. Adjusted balance of Inventory. 2. Adjusted balance of accounts payable: 3. Adjusted balance of sales: 4. How much is the increase (decrease) in cost of sales?

The Borderland Company is a wholesale distributor of automotive replacements parts. Initial amounts taken from Borderland's accounting records are as follows: Inventory at December 31, 2020 (based on physical count of goods in warehouse on December 31, 2020) P1,250,000 Sales in 2020 9,000,000 Accounts payable at December 31, 2020: Vendor Chota Company Arisu Company Karube Corp Niragi Inc. Asahi Inc. Total Terms 3/10,n/30 n/30 n/30 n/30 n/30 Amount P365,000 210,000 200,000 125,000 100,000 1,000,000 Additional information: a. Parts held on consignment from Arisu to Borderland amounting to P155,000, were included in the physical count of goods in Borderland's warehouse on December 31, 2020 and in accounts payable as of December 31, 2020. b. Parts in transit on December 31, 2020 to a customer, shipped FOB seller on December 28, 2020, costing P34,000. The customer received the parts on January 4, 2021. Sales for P40,000 to the customer for the parts were recorded by Borderland on January 4, 2021. c. Retailers were holding a P210,000 at cost (P250,000 at retail) of goods on consignment from Borderland at their stores as of December 31, 2020. d. Goods were in transit from Yuzuha to Borderland on December 31, 2020. The cost of goods was P25,000 and shipped FOB shipping point on December 29, 2020. Page 5 e. A quarterly freight bill in the amount of P2,000 specifically relating to merchandise purchases in December 2020, all of which was still in the inventory at December 31, 2020, was received on January 2, 2021. The freight bill was not included in either the inventory or accounts payable at December 31, 2020