The following information was obtained from the company's accounting records of ABC for the year ended December 31, 2017: . Inventory at December 31, 2017 (based on physical count) 1,920,000 Accounts payable at December 31, 2017 1,650,000 Net sales (sales less sales returns) 10,420,000 ADDITIONAL information: The physical count included tools billed to a customer FOB shipping point on December 31, 2017. These tools cost P64,000 and were billed at P78,500. They were in the shipping area waiting to be picked up by the customer. Goods shipped FOB shipping point by a vendor were in transit on December 31, 2017. These goods with invoice cost of P97,000 were shipped on December 29, 2017. . Work in process inventory costing P30,000 as sent to a job contractor for further processing. . Not included in the physical count were goods returned by customers on December 31, 2017. These goods costing 63,000 were inspected and retuned to inventory on January 7, 2018. Credit memos for P72,000 were issued to a customer at that date. . In transit to a customer on December 31, 2017, were tools costing P17,000 shipped FOB buyer on December 26, 2017. A sales invoice for P30,000 was issued on January 3, 2018, when the company was notified by the customer that the tools had been received. At December 31, 2017, goods costing P42, were received from a vendor. These were recorded on a receiving report dated January 2, 2018. The related invoice was recorded on December 31, 2017, but the goods were not included in the physical count. . Included in the physical count were goods received from a vendor on December 27, 2017. However, the related invoice for P45,000 was not recorded because the accounting department copy of receiving report was lost. . A monthly freight bill for P20,000 was received on January 3, 2018. It specifically related to merchandise bought in December 2017. 1/2 of which was still in the inventory at December 31, 2017. The freight was included in the inventory but not in the accounts payable at December 31, 2017. Requirement: Based on the above and the result of your audit answer the following; 1. Necessary adjusting entries to record each transaction 2. Adjusted balance of Inventory 3. Adjusted amount of Accounts Payable 4. Adjusted amount of net sales