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TEST 111 answer it with complete solution. Thank you

TEST 11 Multiple Choice. Encircle the correct letter as your answer. (15 points) 1. Mr. Santos paid the rent of the store, P8,000 in advance for two months starting Nov. 1, 2929 The entry to record the payment under the asset method is - DEBIT CREDIT a.) Rent Expense P8,000 Cash P8,000 b.) Prepaid Rent P4,000 Cash P4,000 c.) Prepaid Rent P8,000 Rent Payable P8,000 d) Prepaid Rent P8,000 Cash P8,000 The adjusting entry to record the rent expense on Dec 31, 2020 a) Prepaid rent P4,000 Rent Expense P4,000 b.) Rent Expense P4,000 Prepaid Rant P4,000 c.) Rent Expense P4,000 Cash P4,000 d.) Prepaid Rent P8,000 Rent Expense P8,000 2. Rendered services on account to Mr. B. A. Subas, P10,000 on June 1, 2020. On Dec. 31, Mr Subas did not pay. The business provided 10% allowance for bad debts. a.) Cash The journal entry to record the service is - P10,000 Service Income b.) Accounts Receivable P10,000 Sales c.) Note Receivable P10,000 Accounts Receivable d.) Accounts Receivable P10,000 Service Income P10,000 P10,000 P10,000 P10,000 The entry to record the bad debts expense- a Service Income P1,000 Accounts Receivable P1,000 b. Bad Debts P1,000 Accounts Receivable P1,000 Bad Debts P1,000 Accur. Depreciation P1,000 d Bad Debts P1,000 Est Uncollected Acct. P1,000 3 A 60 day -6% note for P5,000 was received for services rendered on June 1, 2020 a) Account Receivable P5,000 Service Income P5,000 b.) Service Receivable P5,000 Service Income P5,000 c) Note Receivable P5,000 Account Receivable P5,000 d.) Note Receivable P5,000 Service Income P5.000 The interest expense is - a) P50 b.) PS. c.) P500 d) P100 TEST 111 - Compute for the following: 1. You rendered services on account to Mr.Lopez for P25,000 on January 31, 2020. On June 30, 2020 Mr Lopez did not pay his account. The business provided 10% allowance for bed debts. How toch is the bad debts. Make a journal entry for the bad debts (5 points) 2. Calculate the monthly Depreciation Expense using the Straight line Method On June 1, 2020, Mr Carlo Sy bought a machinery for his manufacturing company worth P575,860, the estimated life of which is 10 years, the scrap value is P7,000. a) How much is the scrap value and the monthly depreciation. b.) Prepare journal entry for the depreciation expense c.) Determine the Net Book value of the machinery at the end of the year. (10 points)