Problem 3-3 Manipulated Bank Reconciliation The Lising Company did not exercise adequate internal control over its cash transactions. During an audit, you found the following data concerning the cash position as of June 30, 2018. On the company's records the balance of cash on hand and in bank was P 34,700. A credit of P 500 for a note collected by the bank does not appear on the company's records. The bank statement balance is P 27,000. Outstanding checks are as follows: Number Amount 1972 P1,040 1973 720 1974 816 1975 692 The cashier prepared the following reconciliation: Balance per bank statement P27,000 Deduct: Outstanding checks: No. 1973 P720 No. 1974 816 No. 1975 692 2,028 24,972 Add: Cash on hand (this count is correct) 9,228 Collected note 500 9,728 Cash per company records, June 30, 2018 P34,700 Required: 1. What is the amount of the shortage? 2. How did the cashier attempt to conceal the shortage