1. The financial statement of Katherine Company included the following information for 2021:

January 1 December 31

Accounts receivable 1,200,000

Allowance for doubtful accounts 60,000

Sales 8,000,000

Cash collected from customers 7,000,000

The cash collection included a recovery of P10,000 from a customer whose account had been written off as worthless in 2020. During 2021, it was necessary to recognize doubtful accounts expense of P100,000 and write off worthless customers' accounts of P30,000. On December 1, 2021, a customer settled an account by issuing a 12%, six month note for P400,000. What is the net realizable value of accounts receivable on December 31,2021?

2. When examining the accounts of Brute Company, it is ascertained that balances relating to both receivables and payables are included in a single controlling account called "receivable control" that has a debit balance of P4,850,000. An analysis of the make-up of this account revealed the following:

Debit Credit

Accounts receivable- customers 7,800,000

Accounts receivable- officers 500,000

Debit balances-creditors 300,000

Postdated checks from customers 400,000

Subscription Receivables 800,000

Accounts payable for merchandise 4,500,000

Credit balances in customers' accounts 200,000

Cash received in advance from customers

for goods not yet shipped 100,000

Expected bad debts 150,000 After further analysis of the aged accounts receivable, it is determined that the allowance for doubtful accounts should be P200,000. What amount should be reported as "trade and other receivables" under current assets?