10. On March 1, 2008 Jose and Kiko decides to combine their business to form a partnership. Their sheets on March 1 before the formation, showed the following: Jose Kiko Cash P9,000 P3.750 Accounts receivable 18.500 13.500 Inventories 30.000 19.500 Furnitures and fixture (net) 30,000 9.000 Office equipment (net) 11,500 2,750 Prepaid expenses 6.375 3,000 Total P105.375 P51,500 Accounts Payable P45.750 P18,000 Capital 59.625 33.500 Total P105,375 P51,500 They agreed to following adjustments before the formation: a. Provide 2% allowance for doubtful accounts. b. Jose's furniture should be valued at P31,000, while Kiko's office equipment is under depreciated by P250. C. Rent expense incurred previously by Jose was not yet recorded amounting to P1,000, while salary expense incurred by Kiko was not also recorded amounting to P800