The MY GOSH Company is on a calendar year basis. The following data were found during your audit:

a. Goods in transit shipped FOB destination by a supplier, in the amount of P100,000, had been excluded from the inventory, and further testing revealed that the purchase had been recorded.

b. Goods costing P50,000 had been received, included in inventory, and recorded as a purchase. However, upon your inspection the goods were found to be defective and would be immediately returned.

c. Materials costing P250,000 and billed on December 30 at a selling price of P320,000, had been segregated in the warehouse for shipment to a customer. The materials had been excluded from inventory as a signed purchase order had been received from the customer. Terms, FOB destination.

d. Goods costing P70,000 was out on consignment with Hermie Company. Since the monthly statement from Hermie Company listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at P80,000.

e. The sale of P150,000 worth of materials and costing P120,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. The sale was properly recorded in 2006.

f. Goods costing P100,000 and selling for P140,000 had been segregated, but not shipped at December 31, and were not included in the inventory. A review of the customer's purchase order set forth terms as FOB destination. The sale had not been recorded.

g. Your client has an invoice from a supplier, terms FOB shipping point but the goods had not arrived as yet. However, these materials costing P170,000 had been included in the inventory count, but no entry had been made for their purchase.

h. Merchandise costing P200,000 had been recorded as a purchase but not included as inventory. Terms of sale are FOB shipping point according to the supplier's invoice which had arrived at December 31.

i. Further inspection of the client's records revealed the following December 31, 2006 balances: Inventory, P1,100,000; Accounts receivable, P580,000; Accounts payable, P690,000; Net sales, P5,050,000; Net purchases, P2,300,000; Net income, P510,000.

Based on the above and the result of your audit, determine the adjusted balances of following as of December 31, 2006:

12. InventoryA. 1,230,000 B. 1,480,000C. 1,550,000D. 1,650,000

13. Accounts payable A. 540,000 B. 710,000 C. 760,000 D. 810,000

14. Net salesA. 4,550,000 B. 4,650,000C. 4,730,000 D. 4,970,000

15. Net purchases A. 2,150,000 B. 2,320,000 C. 2,370,000 D. 2,420,000

16. Net income A. 220,000 B. 290,000 C. 540,000 D. 550,000

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