Prepare the journal entry:

A physical inventory was conducted simultaneously in the store and the warehouse in the presence of your audit staff. Your review disclosed the following;

Certain purchase of textile materials amounting to 153,000 were already paid and recorded but the same have not been received as of date of count. Based on the documents presented, these were shipped by the supplier on June 27, 2021, FOB shipping point.

Shipping and other charges on some items purchased amounting to P 21,300 were charged to expenses. The related inventories were already included in physical count. It is the policy of the company to allocate shipping costs to its inventory.

Several inventory items ordered from a supplier on FOB destination in late June totaling P 140,500 were received only on July 21, 2021. No payment was made yet as of year-end.

A suppliers invoice for P 38,200 worth of textile materials dated June 24, 2021 was received through the mails on June 29, 2021. The goods were shipped on June 26 but the goods arrived only on July 5, 2021. Shipment terms are FOB shipping point while payment terms are 15 days. The goods were not included in in the year-end physical count.