Problem 1 Use the following to answer questions 1-5 At the close of its fiscal year March 31, 2018, ALDEN CO. reported inventory of P35,000 as a result of physical count. The company was then in the process of relocating its plant which resulted in some confusion relating to the inventory cut off as indicated by the following: 1. a. Merchandise on hand costing P17,940 was included in the inventory although the purchase invoice was not recorded until April 12, 2018. b. Merchandise shipped on April 01, 2018 was included in the inventory. The cost of this merchandise was P22,190 and the sales was recorded as P31,380 on March 31, 2018 C. d. e. Merchandise costing P12,150 was included in the inventory although it was shipped to a customer on March 31, 2018, FOB shipping point. The company recorded the sale of P19,246 on that date. Merchandise costing P18,200 was not counted. Merchandise in transit (shipped to the company, FOB destination) was recorded as a purchase as of April 2, 2018 and its cost of P17,287 was not included in the March 31, 2018 inventory. As a result of the above errors, by how much was the inventory account of ALDEN CO. as of March 31, 2018 overstated or understated. a. P 12,150 overstated b. P 6,050 understated 2. C. d. P 18,200 understated P 16,140 overstated As a result of the above error, by how much was the purchases account overstated or understated as of March 31, 2018? a. P 17,940 understated b. P 35,227 understated C. d. P 17.287 understated P not affected 3. As a result of the above error, by how much was the sales account for the year ended March 31, 2018 overstated or understated? a. P 12,134 overstated b. P 31,380 overstated P 12,134 understated d. P 50,626 overstated As a result of the above error, by how much was the purchases account overstated or understated as of March 31, 2018? a. P 17,940 understated b. P 35,227 understated c. P 17,287 understated d. P not affected As a result of the above error, by how much was the correct Inventory account as of March 31, 2018? a. P 41,050 b. P 35,000 PA C. P 52,940 d. P 47,060