The Charmaine Company has adjusted and closed its books at the end of 2015. The company arrives at its ending inventory position of 500,000 by a physical count taken on December 31 ₱ of each year. The following are other data as of December 31, 2015: Net Sales ₱1,000,000 Cost of Sales 550,000 Net income 200,000 Retained earnings after closing net income of 200,000 ₱ 1,500,000 In March of 2016, the following errors were discovered. a. Merchandise which cost 50,000 was sold for 64,000 on December 28, 2015. The ₱ ₱ order was shipped on December 31, 2015 with terms of FOB shipping point. The merchandise was not included in the ending inventory. The sale was recorded on January 10, 2016 when the customer made payment on the sale. b. Merchandise costing 19,000, located in a separate warehouse, was overlooked and ₱ excluded from the 2015 inventory count. c. On December 27, 2015, Charmaine purchased merchandise from a supplier costing ₱23,500. The order was shipped December 29 (terms FOB destination) and was still “intransit” on December 31, the purchase was recorded in 2015. The merchandise was not included in the inventory count. d. The client included in its 2015 ending inventory a merchandise costing 25,800. This ₱ merchandise had been custom-built and was being held until the customer could come and pick up the merchandise. The sale for 28,500 was recorded in 2016. ₱Questions: Based on the above data, answer the following: 1. Compute for the adjusted balance of ending inventory as of December 31, 2015. 2. Compute for the adjusted balance of Net Sale, 12/31/12. 3. Compute for the adjusted balance of cost of sales, 12/31/2015. 4. Compute for the adjusted balance of Net income, 12/31/2015. 5. Compute for the adjusted balance of the retained earnings, 12/31/2015
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