Tricia Company reported inventory on December 31, 2020 at P5,000,000 based on physical count of goods priced at cost, and before any year-end adjustment relating to the following (see photo below). What amount should be reported as inventory on December 31, 2020?

a. P5,010,000

b. P4,965,000

c. P5,035,000

d. P5,020,000

Included in the physical count were goods sold to a customer FOB shipping point on December 31, 2020 for P150,000. Goods are priced at 120% of costs. Goods purchased FOB shipping point on December 28, 2020 were received from a vendor on January 3, 2021 amounting to P100,000. Freight paid was P15,000 Inventories amounting to P45,000 in the display room were not counted