The inventory control account balance at June 30, 2020 was P221,020 using the perpetual inventory system. A physical count conducted on that day found inventory on hand worth P220,200. Net realizable value for each inventory item held for sale exceeded cost. An investigation of the discrepancy revealed the following:

1. Goods worth P6,600 held on consignment for Port Company had been included in the physical count.
2. Goods costing P1,200 was purchased on credit from Rome, Inc. on June 27, on FOB shipping point terms. The goods were shipped on June 28, 2020 but, as they had not arrived by June 30, 2020, were not included in the physical count. The purchase invoice was received and processed on June 30, 2020.
3. Goods costing P2,400 sold on credit to ALTHEA Co. for P3,900 on June 28, 2020 on FOB destination terms. The goods were still in transit on June 2016. The sales invoice was processed on June 29, 2020.
4. Goods costing P2,730 were purchased on credit (FOB destination) from Sanmig Co. on June 28, 2020. The goods were received on June 29, 2020 and included in the physical count. The purchase invoice was received on July 2, 2020.
5. On June 30, 2020, NEVERGIVEUP sold goods costing P6,300 on credit (FOB shipping point) to Pizza Co. for P9,600. The goods were dispatched from the warehouse on June 30, 2020 but the sales invoice had not been processed at that date.
6. Damaged inventory items valued at P2,650 were discovered during the physical count. These items were still recorded on June 30, 2020 but were omitted from the physical count records pending their write-off.

Based on the preceding information, answer the following:

1. The adjusting entry for the consigned goods included in the physical count (Item a) should include

1. Debit to inventory for P6,600 c) Credit to purchases for P6,600
2. Credit to inventory for P6,600 d) No adjusting entry is necessary