Answer the following problems

Problem 1(Adopted): 7 From up Aleah Company acquires goods from different suppliers. The following transactions occurred during the last few days of the company's operation which ended December 31, 2019, and in the first few days after the said date Purchases from Luzon suppliers: 1. An invoice for P50,000 shipped FOB shipping point was received and recorded on December 31, 2019. The invoice shows the goods had been shipped on December 28, 2019 and the receiving report indicates that the goods had been received on December 31, 2019. 2. An invoice for P25,000 shipped FOB shipping point was recorded on December 31, 2019. The invoice shows that the goods had been shipped on December 28, 2019 and the receiving report indicates that the goods had been received on January 2, 2020. Purchases from Mindanao suppliers: 3. An invoice for P80,000 shipped free alongside (FAS) was not recorded on December 31, 2019. The invoice shows that the goods had been delivered to the carrier on December 28, 2019 and the receiving report indicates that the goods had been unloaded by the carrier and received by the company on January 2, 2020. On January 2, 2020, Aleah paid P10,000 cost of loading and shipment which was debited to delivery expense. 4. An invoice for P60,000 shipped cost, insurance and freight (CIF) was recorded on December 31, 2019. The invoice shows that the goods had been delivered to the carrier on December 28, 2019 and the receiving report indicates the the goods had been unloaded by the carrier and received by the company on January 4, 2020. The invoice cost includes the cost of the goods, insurance and freight of P15,000. 5. An invoice shows that the goods had been delivered and received by the company on December 31, 2019. The invoice cost excludes the cost of loading and shipment. On December 31, 2019, Aleah paid P5,000 cost of loading and shipment which was debited to delivery expense. Purchases from foreign suppliers: 6. On September 29, 2019, Aleah bought goods from Paris Hilton Company for $10,000. The exchange rate at September 29, 2019 was &l = P40, the closing rate ate December 31, 2019 was &1 = P35 and the average rate for 2019 was &l = P38. The account was paid on February 4, 2020 when the exchange rate was &1 = P43. Aleah uses Philippine peso as its functional currency. The company did not include these goods although they are still on hand at year-end. The company did not record the purchase nor the fluctuation in the foreign currency.Sales: 7. Sales out on consignment amounting to P100,000 was recorded as sales on December 31 even though the goods have been sold only in early of next year. The cost of the goods amounted to P60,000 was included in the count. 8. An item costing P40,000 was sold and delivered to the customer on December 29, 2019. The goods were included in the inventory because the sale was with a repurchase agreement that requires the company to buy back the inventory on January 10, 2020. The same was recorded a cash sale at P60,000. Inspection of the client's records revealed the following on December 31, 2019: Inventory (based on physical count) 500,000 Accounts payable 800,000 Accounts receivable 2,000,000 Net sales 8,000,000 Net purchases 5,000,000 Net income 1,200,000 Required: Based on the above audit, compute for the adjusted balances of the following as of December 31, 2019: (One point for every correct answer, total of 6 points) 1. Inventory 2. Accounts payable 3. Accounts receivable hero aut ved store good back 4. Net sales 5. Net purchases including appropriate cost of loading and freight 6. Net income Problem 2 (Adopted): 16 The working capital section of Frea Company shows the following balance as of December 31, 2019 before any adjustments: Cash in bank (per book) 150,000 Accounts receivable 240,000 Allowance for bad debt 12,000 Merchandise Inventory 380,000 Prepayments 42,000 Accounts payable 220,000 Notes payable 250,000 Additional information: 1. An invoice for P60,000 shipped FOB shipping point was recorded January 2, 2020. The invoice shows the goods had been shipped on December 28, 2019 and the receiving report indicates that the goods had been received on January 2, 2020. 2. A quarterly freight bill in the amount of P4,000 specifically relating to merchandise purchases in December 2019, all of which was still in the inventory at December 31, 2019, was received on January 3, 2020. The freight bill was not included in either the inventory or in accounts payable at December 31, 2019. 3. Merchandise sold to a customer costing P10,000 was shipped on December 29, 2019. The sales invoice showed shipment was made FOB shipping point. The goods were received by the customer on January 3, 2020 and the customer was billed P28,000 at that time.4. Sales on consignment amounting to P68,000 was recorded as sale on December 31 even though the goods have been sold only in the early of next year. The cost of the goods amounting to P34,000 was not included in the count. 5. Customer's checks returned by the bank marked "DAIF" in December 2019 and redeposited in January 7, 2020, P40,000 6. On December 31, a bank credit memo representing collection by the bank from one of the company's major customer amounted to P50,000 7. The company wrote several checks at the end of 2019 for accounts payable that were held and not emailed until January 15, 2020. These totalled P65,000 and were included in the outstanding checks of December 31, 2019. 8. The prepaid insurance account contains the premium costs of two policies. (1) Policy A, cost P24,000, two-year term taken on September 1, 2019; (2) Policy B, cost of P18,000, three year term taken on April 1, 2019. 9 . The company's income statement includes P80,000 of revenue for credit sales made on a 'sale or return' basis. At December 31, 2019, who have not paid the goods had the right to return P26,000 of them. the company applied a mark-up on cost of 30% on all of these sales. In the past, the company's customers have sometimes returned goods under this type of agreement. 10. In the late December 2019 the directors of the company discovered a material fraud perpetrated by the company's credit controller that had been continuing for some time. Investigations revealed that a total of P40,000 of the trade receivable as shown in the financial statement had in fact paid and the money had been stolen by the credit controller. An analysis revealed that P15,000 had been stolen in the year to December 31, 2018 with the rest being stolen in the current year. The company is not insured for this loss and it cannot be recovered from the credit controller. Required: Compute for the adjusted balance of the following accounts as of December 31, 2019: (One point for every correct answer, total of 5 points) a. Cash b. Accounts receivable - net realizable value c. Merchandise inventory d. Accounts payable e. Working capital