The Manila Corporation was organized on January 15, 2019 and started operation soon thereafter. TheCompanycashierwhoactedalsoasthebookkeeperhadkepttheaccounting recordsveryhaphazardly.The manager suspects him of defalcation and engaged you to audit his account to find out the extent of the fraud, if there is any.On November 15, when you started the examination of the accounts, you find the cash on hand to be P18,800.From inquiry at the bank, it was ascertained that the balance of the Company's bank depositincurrentaccountonthesamedatewasP200,000.Verification revealed that the check issued for P15,040 is not yet paid by the bank.The corporation sells at 30% above cost.

Your examination of the available records disclosed the following information: