this is under the topic audit of inventory. Thank you

PROBLEM#1 Bubble Gang Co. asks you to review its December 31, 2020, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Bubble Gang uses the periodic method of recording inventory. A physical count reveals P704,670 of inventory on hand at December 31, 2020. 2. Not included in the physical count of inventory is P31,260 of merchandise purchased on December 15 from Benggay. This merchandise was shipped FOB Shipping Point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Bubbly on December 30, FOB Destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for P38,400 on December 31. The merchandise cost P22,050, and Bubbly received it on January 3. 4. Included in inventory was merchandise received from Doodle on December 31 with an invoice price of P46,890. The merchandise was shipped FOB Destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is P25,620 of merchandised purchased from Maundy Company. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. 6. Included in inventory was P31.314 of inventory held by Bubble Gang on consignment from Jaka Corporation. 7. Included in inventory is merchandise sold to Simson FOB Shipping Point. The merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for P56,700 on December 31. The cost of this merchandise was P34,560, and Simson received the merchandise on January 5. 8. Excluded from inventory was a carton labeled "Please accept for credit." This carto contains merchandise costing P4,500 which had been sold to a customer for P7,800. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Required: a. Compute the correct inventory balance for Bubble Gang at December 31, 2020. Prepare any correcting entries to adjust inventory and related accounts to their proper amounts at December 31, 2020. Assume the books have been not closed