10. From inception of operations to December 31, 2003, Murr Corporation provided for uncollectible accounts receivable under the allowance method, provisions were made monthly at 2% of credit sales, bad debt written off were charged to the allowance account, recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Murr's usual credit terms are net 30 days. The balance in the allowance for doubtful accounts was P120,000 at January 1, 2004. During 2004, credit sales totaled P9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, P90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to P15,000. Murr installed a computer facility in November 2004 and prepared an aging of accounts receivable for the rst time as of December 31,2004. A summary of the aging is as follows: Classication by Balance in Estimated % month of sale each category uncollectible November December 2004P2,000,000 2% July October 600,000 10% January June 400,000 25% Prior to 1/1/2004 200 000 75% P3 200 000 Based on the review of collectibility of the account balances in the "prior to 1/1/2004" aging category, additional receivables totaling P60,000 were written off as of December 31, 2004. Effective with the year ended December 31, 2004, Murr adopted a new accounting method for estimating the allowance the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. What is the year-end adjustment to the allowance for doubtful accounts as of December 31, 2004? (a) P305,000 (b) P180,000 (c) P320,000 (d) Pl40,000 D