Determine whether each item is true or false. If false, kindly provide an explanation that shows why does the statement is incorrect.

PROBLEM 1: TRUE OR FALSE 1. Goods with a list price of P1,000 are sold at a trade discount of 30% and terms of 2/10 and n/30. The invoice price is P686, 2. Entity X's total accounts receivable is P100, net of P5 credit balance in Customer A's account. The adjusted balance of accounts receivable is P95. 3. Water Co. receives a sale order on March 29, 20x1 and ships the goods on March 30, 20x1. The customer receives the goods on April 2, 20x1. If the sale term is FOB destination, the sale price of the goods shipped will be reported as receivable and sale in Water Co.'s March 31, 20x1 financial statements. 4. The accounts receivable account of Entity X has a gross balance of P100. If the carrying amount of the accounts receivable is P85, the allowance for bad debts account must have a balance of P15. 5. Entity Y uses the percentage of credit sales method in estimating credit losses on its trade receivables. Entity Y's estimate of credit losses is 3% of net credit sales. If Entity Y reports net credit sales of P100, the bad debt expense for the year would be P3. 6. Sween Co.'s accounts receivable increased by P100 during the period. If total collections of accounts receivable during the period were P300, the net credit sales were 200. 7. If the beginning balance of allowance for doubtful accounts is P20, the bad debts expense for the period is P10, and accounts written-off are P5, the ending balance is P20. 8. An entity's allowance for bad debts has a beginning balance of P10. During the period, the entity wrote-off a P5 account and recovered a P3 account receivable. If the required balance of the allowance at the end of the period is P15, the bad debts charged to expense must be P2. 9. An entity's allowance for bad debts account has an ending balance of P10. Accounts written-off and recovered during the period were P8 and P3, respectively. If the amount of bad debts recognized in profit or loss is P9, the balance of the allowance account at the start of the period must be P6. 10. Quick Co. provides 30-day credit period to its customers. In Quick Co.'s aging schedule, receivables under the age bracket "121 to 150 days" would be considered "91 to 120 past due."