You were assigned to audit the liability accounts of your audit firm’s client Shin Hye Inc. as of December 31, 2021. The following lead schedule of liabilities has been provided by the client accountant for your reference: Accounts payable, trade P291,000 Provision for warranties 194,800 Accrued salaries expense – 732,000 compensated absences Accrued salaries expense – 223,256 profit-sharing bonus Audit notes: ● The accounts payable, trade balance is net of a P23,000 customer advances for goods to be delivered in January of the following year. Further more a cut-off procedure for the said account balance resulted to the following information: Purchase Journal Entry date Receiving Report Date Amount Audit Notes dec 28 dec 27 7000 fob shipping point dec 29 dec 28 9000 fob destination dec 30 dec 30 12000 fob destination jan 2 dec 31 15000 fob destination jan 2 jan 2 8000 fob shipping point (in transit) jan 3 jan 2 11000 fob shipping point *Inventories resulting from a physical count on December 31 amounted to P338,000. ● The provision for warranties was the accrued warranties in the prior year. No reversal nor adjustments were done during the current year. Details regarding the company’s one-year “assurance-type” warranty program are as follows: 2020 2021 sales covered by warranty (in units) 5200 7500 selling price 120 125 actual warranty costs spent 320000 512300 Additional information: The company estimates that 60% of the units sold shall be returned for the warranty program and that the company will incur P165 for part and labor per unit returned. Records revealed that from the actual warranty cost spent in 2021, P180,000 relates to 2020 sales. ■ The accrued salaries for compensated absences was the balance in the prior year. No reversal entry nor accrual has been made for the current year. The accrual in the previous year comprise a total of 1,220 days of accumulated and unused sick and vacation leaves of employees as of December 31, 2020. 900 days were earned in 2020 with the balance earned in 2019. Incidentally, employees are entitled to a 15-day vacation and 15-day sick leave for every year of service. The company had 30 employees (assumed employed throughout 2020 and 2021). Earned leaves are carried over 2 years from year of grant, thereafter, unused leaves shall expire. Records revealed that 850 days of the compensated absences were used by the employees in 2021. From the leaves exercised in 2021, 250 days were earned in 2019. Furthermore, there has been a 10% increase in salary rate in 2021. ● The accrued salaries for profit-sharing bonus was accrued based on 10% of the unadjusted net income (before audit adjustments) after 25% RCIT tax and after bonus. Requirements: 1. What is the correct/adjusted balance of Accounts Payable – trade as of December 31? 2. What is the correct/adjusted balance of Provision for Warranties as of December 31? 3. What is the correct/adjusted balance of Accrued Salaries for Compensated Absences as of December 31?