Glenn Corporation sells electronic gadgets. In your audit of the company's financial statements for the years ended December 31, 2021, you have gathered the following data concerning inventory. At December 31, 2020, the balance of the inventory account was P451,800, and the allowance for inventory write-down had a balance of P28,800. The relevant inventory cost and market data at December 31, 2021, are summarized below:

	Cost	Sales Price	NRV	Normal Profit
Gadget A	P80,100	P82,350	P78,300	P5,760
Gadget B	84,600	83,700	76,500	6,696
Gadget C	112,500	116,100	99,900	10,449
Gadget D	174,600	184,500	177,300	18,450
Total	P451,800	P466,650	P432,000	P41,355

The company estimated the cost to sell at 10% of the selling price of each of the gadgets.

Questions:

1. Compute the correct amount of inventory to be reported at December 31, 2021.

2. Prepare the necessary adjusting entry, if any, to reflect the correct amount of inventory at December 31, 2021.