Examination of the records of Dream High Company for the year ended December 31, 2020...
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Accounting
Examination of the records of Dream High Company for the year ended December 31, 2020 revealed the following:
  •During 2020, Dream High received P40,000 as cash advance from a customer for merchandise to be manufactured and shipped during 2021. The P40,000 was credited to sales revenue.
  •Inventory on January 1, 2020 was overstated by P71,000.
  •Inventory on December 31, 2020 was understated by P96,000.
  •Profit (before adjustments) reported on the 2020 profit or loss was P658,000.
What is the correct profit for the year ended December 31, 2020?
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