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The following errors committed in 2016: . Prepaid insurance was understated by P10,000 Ending inventory was overstated by P40,000 Depreciation expense was understated by P70,000

The following errors committed in 2016: . Prepaid insurance was understated by P10,000 Ending inventory was overstated by P40,000 Depreciation expense was understated by P70,000 Cost of goods sold was understated by P40,000 1. What is the effect of the errors on the 2017 net income? 2. Propose auditor's Adjusting entry for above error

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