On January 10, 2022, prior to authorization of ABC Co.'s December 31, 2021 financial statements for issue, the accountant of ABC Co. was informed of the following:

A bill for an advertisement made in the month ofDeoenlber 2021 amounting to P400,000 was received. This expense was not seemed as of December 31, 2021. Depreciation expense recognized in 2021 is overstated by P400300. As of this date, the books of the entity are still open