1. Sam Company received cash of P12, 000 in advance for revenue that will be earned subsequently. The cash receipt entry debited cash and credited unearned revenues for P12, 000. At the end of the period, it was determined that P2, 200 is still unearned. The adjusting entry will

choices: Debit unearned revenues and credit revenues for P2, 200

Debit revenues and credit unearned revenues for P9, 800

Debit unearned revenues and credit revenues for P9, 800

Debit revenues and credit unearned revenues for P2, 200

2. The total sales was P1,000,000 of which sales on cash basis amounted to P400,000. The policy of the business is to provide 1% of credit sales as bad debt expense. The bad debt expense is

choices: P10, 000

P6, 000

P4, 000

None

3. Insurance expense account has a balance of P10,800 before adjustment. This amount represents insurance premium for four months beginning November 1, 2016. Based on these data, the prepaid insurance that should be reported in the December 31, 2016 statement of financial position is

choices: 0 P

5,400 P

2,700 P

10,800

4. The beginning balance of accounts receivable was P499,950 net of allowance for doubtful accounts. The accounts receivable end of year is P550, 000 before allowance for doubtful accounts. The allowance for doubtful accounts is estimated at 1% of the accounts receivable. The doubtful accounts expense is Group of answer

choices P550

P5, 050

P450

P5, 500