1.) Juan Company provided the following information:

On July 1, 2018 the company sold equipment to Virgin Company for P10,000,000. The company accepted a 10% note receivable for the sales price. This note is payable in two equal installments of P5,000,000 plus accrued interest on December 31, 2018 and 2019. On July 1, 2019, the company discounted the note at 12%. Also, On October 1, 2019, the company discounted with recourse at 12% a one-year noninterest bearing note of P5,000,000 maturing on January 1, 2020.

At year-end, a fire damaged the warehouse and factory of the company completely destroying the work in process inventory. There was no damage to either the raw materials or finished goods. The physical inventory revealed the following: Raw Materials, beginning - 1,700,000; Work-In-Process, beginning - 4,300,000; Finished Goods Inventory, beginning - P6,000,000, Raw Materials, ending - 2,000,000, and Finished Goods, ending - 4,500,000. The gross profit margin historically approximated 30% of sales. The sales for the year amounted to P20,000,000. Raw material purchases totaled P4,000,000. Direct labor costs for the year amounted to P5,000,000, and manufacturing overhead has been applied at 60% of direct labor.

The company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of December, the company wrote-off a P100,000 receivable and made no recoveries of previous write-offs, Following the adjusting entry for December, the credit balance in the allowance for doubtful accounts, was P250,000 larger than it was on December 1.

The records revealed a bank statement balance of P45,000,000 and a book balance of P50,000,000. A deposit of P12,000,000 placed in the bank's might depository on December 29, 2019 does not appear on the bank statement. Checks outstanding at year-end amount to P3,000,000. The bank statement shows that on December 15, 2019, the bank collected a note for the company and credited the proceeds of P5,500,000 to the company's account. The proceeds included an interest of P500,000, all of which the company earned during 2019. Further, a check written on December 20, 2019 for P900,000 in payment of an account had been recorded by the company as P600,000. Also included with the December 31, 2019 bank statement was an NSF check of P1,000,000. The bank statement also shows a P200,000 service charge.

What amount of uncollectible account expense was recorded for December?

Group of answer choices

a.P100,000

b.P150,000

c.P230,000

d.P350,000

2.) Uno Company showed the following unadjusted cash balances at December 31, 2019:

Undeposited coin and currency - cash on hand500,000

Cash in bank - current account6,000,000

Company checks written and deducted from the current account

but not scheduled to be mailed until January 2, 20201,000,000

Time deposits restricted for use (expected use in 2020)2,000,000

Uno Company's bank statement for the month of December included the following information:

Bank Service charge for December20,000

Check deposited by Uno during December was not collectible

and has been marked "NSF" by the bank and returned100,000

In comparing the bank statement to its own cash records, Uno found:

Deposits made but not yet recorded by the bank2,500,000

Checks written and mailed but not yet recorded by the bank1,300,000

All the deposits in transit and outstanding checks have been properly recorded in Uno's books. Uno also found a check for P200,000, payable to Uno, that had not yet been deposited and had not been recorded in Uno's books. Uno agreed to maintain a minimum balance of P50,000 in its unrestricted current account in exchange for a guaranteed line of credit.

How much should Uno report as "cash and cash equivalents" at its December 31, 2019 balance sheet?

Group of answer choices

a.P7,530,000

b.P7,580,000

c.P9,580,000

d.P7,380,000