PROBLEM 1 You are engaged to perform an audit of the accounts of Veers Company for its first year of operations ending December 31, 2020. You have observed the taking of the physical inventory of the company on December 28, 2020. An excerpt of the company's trial balance revealed the following information: Accounts receivable P225,000 Inventory, physical count 127,500 Sales 2,543,000 Purchases 1.125,600 The following lists of sales invoice are entered in the sales books for the months of December 2020 and January 2021 respectively. DECEMBER 2020.SALES JOURNAL ENTRIES Invoice # Selling Cost Date of Shipment Freight term and other remarks Price 20122 14,500 8,200 Dec. 27, 2020 FOB Destination 20123 3,000 2,000 Dec. 28, 2020 FOB Shipping Point, in Transit 20124 15,000 8,000 Dec 28, 2020 Shipped to consignee, 60% unsold by consignee as per consignee report. Commission at 10% of sales. 20125 7,000 6100 Dec. 29, 2020 FOB Destination, in Transit 20126 2,000 800 Dec 30, 2020 FOB Buyer's Warehouse in Transit 20127 1,000 600 Dec 30, 2020 Free Alongside the Vessel, in Transit 20128 4,000 2,400 Jan. 3, 2021 FOB Shipping Poi Invoice # 20129 20130 JANUARY 2021 SALES JORNAL ENTRIES Selling Cost Date of Shipment Freight term and other remarks Price 6,000 4,000 Dec. 31, 2020 FOB Destination, in Transit 8,000 5,800 Dec 31, 2020 FOB Shipping Point, in Transit 7,600 4,800 January 2, 2021 FOB Shipping Point 20131 What are the adjusted balances of the following: 1. Sales 2. Accounts Receivable 3. Inventories