At the beginning of the current year, Duke Edinburgh started a retail merchandise business.

During the year, the entity paid trade creditors P2,000,000 and suffered a net loss of P350,000.

The ledger account preclosing balances at year-end included the following:

Accounts receivable	P 600,000
Accounts payable	750,000
Capital - total investment in cash	2,000,000
Expenses paid in cash	100,000
Merchandise account with unadjusted debit balance	700,000

All sales and purchases were on credit. The merchandise account is debited for purchases and credited for sales.

1. What is the amount of sales for the year?

2. What is the cash balance on December 31?

3. What is the merchandise inventory on December 31?

4. What is the amount of purchases for the year?