In connection with the audit of the Baguio Company for the year ended December 31, 2021, you are called upon to verify the accounts payable transactions. You found out that the company does not make use of a voucher register but enters all merchandise purchases in a Purchases Journal, from which posting are made to a subsidiary accounts payable ledger. The subsidiary ledger balance of P 1,500,000 as of December 31, 2021 agrees with the accounts payable balance in the company's general ledger. An analysis of the account disclosed the following: Trade creditors, credit balances P 1,363,000 Trade creditors, debit balance P 63,000 Net P 1,300,000 P 100,000 Estimated warranty on products sold Customers deposit Due to officers and shareholders for advances Goods received on consignment at selling price (offsetting debit made to Purchases) P 9,000 P 50,000 P 41,000 P 1,500,000 A further analysis of the "Trade Creditors" debit balances indicates: Date Amount Item Miscellaneous debit balances prior to 2019 03/03/2019 (No information available due to loss of P 3,000 records in a fire) Tarlac Co. - Merchandise returned for 06/10/2020 credit, but the company is now out of P 8,000 business. 07/10/2021 Batangas Corp. - Merchandise returned, P 7,000 but Bataan as says "never received". Cagayan Distributors - Allowance granted 10/10/2021 on defective merchandise after the invoice P 5,000 was paid. 12/05/2021 Bataan Co. - Overpayment of invoice P 12,000 Advance to Pangasinan Co. This company 12/05/2021 agrees to supply certain articles on a cost- P 24,000 plus basis Goods returned for credit and adjustment on price after the invoice was paid; credit P 4,000 memos from suppliers not yet received. P 63,000 Your next step is to check the invoices in both the paid and the unpaid invoices files against ledger accounts. In this connection, you discover an invoice from Isabela Co. of P45,000 dated December 12, 2021 marked "Duplicate" which entered in the Purchases Journal in January 2022. Upon inquiry, you discover that the merchandise covered by this invoice was received and sold, but that the original invoice apparently has not been received. In the bank reconciliation working papers, there is a notation that five checks totaling P63,000 were prepared and entered in the Cash Disbursement Journal of December, but these checks were not issued until January 10, 2022. The inventory analysis summary disclosed goods in transit of P6,000 on December 31, 2021, not taken up by the company under audit during the year2021. These goods are included in your adjusted inventory. Questions: 1. The accounts payable - Trade balance on December 31, 2021 should be what amount? 2. The net adjustment to purchases should include what? 3. The entry to adjust the accounts payable account for those accounts with debit balances should include a debit to Miscellaneous losses of what amount? 4. The entry to adjust the Accounts payable accounts for those accounts with debit balances should include a debit to what? In connection with the audit of the Baguio Company for the year ended December 31, 2021, you are called upon to verify the accounts payable transactions. You found out that the company does not make use of a voucher register but enters all merchandise purchases in a Purchases Journal, from which posting are made to a subsidiary accounts payable ledger. The subsidiary ledger balance of P 1,500,000 as of December 31, 2021 agrees with the accounts payable balance in the company's general ledger. An analysis of the account disclosed the following: Trade creditors, credit balances P 1,363,000 Trade creditors, debit balance P 63,000 Net P 1,300,000 P 100,000 Estimated warranty on products sold Customers deposit Due to officers and shareholders for advances Goods received on consignment at selling price (offsetting debit made to Purchases) P 9,000 P 50,000 P 41,000 P 1,500,000 A further analysis of the "Trade Creditors" debit balances indicates: Date Amount Item Miscellaneous debit balances prior to 2019 03/03/2019 (No information available due to loss of P 3,000 records in a fire) Tarlac Co. - Merchandise returned for 06/10/2020 credit, but the company is now out of P 8,000 business. 07/10/2021 Batangas Corp. - Merchandise returned, P 7,000 but Bataan as says "never received". Cagayan Distributors - Allowance granted 10/10/2021 on defective merchandise after the invoice P 5,000 was paid. 12/05/2021 Bataan Co. - Overpayment of invoice P 12,000 Advance to Pangasinan Co. This company 12/05/2021 agrees to supply certain articles on a cost- P 24,000 plus basis Goods returned for credit and adjustment on price after the invoice was paid; credit P 4,000 memos from suppliers not yet received. P 63,000 Your next step is to check the invoices in both the paid and the unpaid invoices files against ledger accounts. In this connection, you discover an invoice from Isabela Co. of P45,000 dated December 12, 2021 marked "Duplicate" which entered in the Purchases Journal in January 2022. Upon inquiry, you discover that the merchandise covered by this invoice was received and sold, but that the original invoice apparently has not been received. In the bank reconciliation working papers, there is a notation that five checks totaling P63,000 were prepared and entered in the Cash Disbursement Journal of December, but these checks were not issued until January 10, 2022. The inventory analysis summary disclosed goods in transit of P6,000 on December 31, 2021, not taken up by the company under audit during the year2021. These goods are included in your adjusted inventory. Questions: 1. The accounts payable - Trade balance on December 31, 2021 should be what amount? 2. The net adjustment to purchases should include what? 3. The entry to adjust the accounts payable account for those accounts with debit balances should include a debit to Miscellaneous losses of what amount? 4. The entry to adjust the Accounts payable accounts for those accounts with debit balances should include a debit to what