Determine the following as a result of your audit: (indicate whether an overstatement of understatement — e.g., 45,000 overstated) 1. What is the total effect of the errors on the 2022 net income? 2. What is the total effect of the errors on the 2023 net income? 3. What is the total effect of the errors on company’s retained earnings as of December 31, 2023? Case 7 ~ Proposed Adjusting Journal Entries (PAJE) Salapan Corporation, a manufacturer of high-quality computers is under your audit for the first time, relative procedures were performed by the auditor and revealed the following transactions that affect the books and balances of Salapan at the end of business year 2023 before any adjustments and closing entries are prepared. [1.]On December 31, 2023, a count was made on the company’s warehouse of its inventory and revealed that an item of high-speed computer was counted twice, the inventory cost is P200,000. The company uses perpetual inventory system.Gner-- - m+sotatement [2] Your inquiry indicates that in previous year, Salapan provides 3% of 23, the management credit sales as Saat At the beginning of 20: vised its estimate of uncollectible accounts by decreasi 9 sales on account for 2022 and 2023 were P7,500,000 and 3200, Gon respectively. hy t re ae Atwo-year insurance policy to cover future casualty was purchas: January 1, 2023 for P150,000. The amount was debited to iieuancs expense when paid. No adjustment was made yet. [4.] Salapan purchased an anti-static computer tool at the beginning of 2023 with estimated useful life of 6-years and depreciated using straight line method. Salvage value of machine is deemed immaterial. The cost of P600,000 was charge to repairs expense when bought and no adjustment is made for this transaction. [5.] Upon inspection of the book, a commission for P65,000 was recorded as expense in 2023, further investigation reveals that such commission is paid in January 14, 2023 when the full amount of credit sales made in 2022 was collected from the customer. Determine the following as a result of your audit: The proposed adjusting journal entry (PAJE) in item 1 is? The proposed adjusting journal entry (PAJE) in item 2 is? The proposed adjusting journal entry (PAJE) in item 3 is? | The proposed adjusting journal entry (PAJE) in item 4 is? j. The proposed adjusting journal entry (PAJE) in item 5 is? Assuming that Salapan Corporation reported net income before any adjustments of P785,000, what is the correct net income for the yar ending December 31, 2023? PARWN>