Assignment - Error Correction Ely Co. reported net income for 2019 P1,000,000, 2020 P1,500,000 and 2021 P2,300,000. An audit disclosed the following: 2019 2020 2021 Net Income per book 1,000,000 1,500,000 2,300,000 1. accounts receivable instead of notes receivable was debited in 18,000 18,000 2021 2. purchases account was debited in 2021 3,000 3,000 instead of office supplies 3. the physical inventory on Dec. 31, 2019 was 7,000 (7,000) 7,000 overstated 4. the physical inventory on Dec. 31, 2020 was 13,000 13,000 understated 5. advances to supplier were recorded as purchases but the merchandise was received in subsequent 28,000 year. 38,000 2019