On December 31, 2019, JC Worldwide computed an ending inventory valuation of P 250,000 based on a periodic inventory system. The accounts for 2019 have been adjusted and closed. Subsequently, the independent auditor located several discrepancies in the 2019 ending inventory. These were discussed with the company accountant, who then prepared the following schedule:

a. Merchandise in store (at 50% above cost)------P250,000

b. Merchandise out on consignment at sales price (including markup of 60% on selling price) ---------------------10,000

c. Goods held on consignment from Davis Electronics at sales price ( sales commission, 20% of sales price, included)----------------------------------------------------4,000

d. Goods purchased, in transit (shipped FOB shipping point, estimated freight, not included, P 800), invoice price--5,000

e. Goods out on approval, sales price, P 2,500,

cost, P 1,000--------------------------------------------------2,500

Total inventory as corrected----------------------------P271,500

Average income tax rate, 40%

Required:

1. The auditor did not agree with the "corrected" inventory amount of P271,500. Compute the correct ending inventory amount (show computation) by modifying the corrected balance of P 271,500.

2. List the items on the statement of comprehensive income and statement of financial position for 2019 that should be corrected for the above errors; give the amount of the error in the balance of each item affected.

3. The accounts have been closed for 2019. Therefore, a correcting entry in January 2020 is needed. Give the required correcting entry.