1 - During 2021, Werts Company a service organization, had Php 200,000.00 in cash sales and Php 3,000,000 in credit sales. The accounts receivable balances were Php 400,000.00 and Php 485,000.00 on December 31, 2020 and 2021, respectively. If the entity desires to prepare a cash basis income statement what amount should be reported as sales for the current year? Please show your solution