For the three consecutive years, the River Company failed to recognize accruals, prepayments, and other transactions in its records. Reported profits and a listing of errors appear below. 2018 2019 2020 Reported profit (loss) P490,000 P670,000 P(320,000) a. Failed to record accrued expenses 34,000 28,000 43,000 b. Overstated ending inventories 63,000 28,000 36,000 c. Failed to record accrued interest on notes receivable 12,000 6,000 8,000 d. Failed to recognize unearned rent 24,000 20,000 18,000 e. Failed to record purchases on account; purchases were recorded 25,000 20,000 when paid in the subsequent year; merchandise properly included in ending inventory f. Repairs and maintenance incurred during the year capitalized as 120,000 80,000 part of asset cost. Full year depreciation at an annual rate of 10% is provided in the year that the asset is recognized. g. Failed to recognize prepaid insurance at yearend. 4,800 6,200 7,800