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Problem - Samar Company reported the following events during the year ended December 31, 2020:
A counting error relating to the inventory on December 31, 2019 was discovered.
This required a reduction in the carrying amount of inventory at that date of P280,000.
The provision for uncollectible accounts receivable on December 31, 2019 was P300,000.
During 2020, an amount of P500,000 was written off related to the December 31, 2019 accounts receivable.
Required - What adjustment is required to restate retained earnings on January 1, 2020?
a. 280,000
b. 300,000
c. 580,000
d. 0
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