2 On Mar 1, 2019, Sarabia and Abad decided to combine their businesses and form partnership. Their statements of financial position on Mar. 1, before adjustmen showed the following: Cash Accounts receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Sarabia P 9,000 18,500 30,000 30,000 11,500 6,375 P105,375 Abad P 3,750 13,500 19,500 9,000 2,750 3,000 P51,500 Accounts Payable Capital Total P 45,750 59,625 P105,375 P18,000 33,500 P51,500 They agreed to have the following items recorded in their books: 1 Provide 2% allowance for doubtful accounts. 2. Sarabia's furniture and fixtures should be P31,000, while Abad's office equipment is under depreciated by P250. 3. Rent expense incurred previously by Sarabia was not yet recorded amounting to P1,000, while salary expense incurred by Abad was not also recorded amounting to P800 The fair market values of inventory amounted to: For Sarabia For Abad P29,500 21,000 1-44 | WIN Bollado's Partnership and Corporation Accounting Compute the net (debit) credit adjustment for Sarabia and Abad: Sarabia Abad Sarabia Abad a. P 2,870 b. P(2,870) P 2,820 P(2,820) C. d. P(870) P 870 P 180 P(180) number what is