Exercise 7 (Finding unknown balances) An auditor for the Internal Revenue Service is trying to reconstruct some partially destroyed records of two taxpayers. For each of the cases in the accompanying list, find the unknown designated by capital letters (figures are assumed to be in thousands). Case 1 Case 2 Accounts receivable, December 31, 20X1 P6,000 P 2,100 Cost of goods sold A 20,000 Accounts payable, January 1, 20X1 3,000 1,700 Accounts payable, December 31, 20X1 Finished goods inventory, December 31, 20X1 164 Chapter 5 1,500 5,300 c 800 Gross margin Work in process, January 1, 20X1 Work in process, December 31, 20X1 Finished goods inventory, January 1, 20X1 Direct material used Direct manufacturing labor Indirect manufacturing costs Purchases of direct material Revenues Accounts receivable, January 1, 20X1 1,800 B 11,300 0 0 4,000 8,000 3,000 7,000 9,000 32,000 2,000 3,000 4,000 12,000 5,000 D 7,000 31,800 1,400