Exercise 18 The following are selected balances taken from the adjusted trial balance of Fernan Corporation as of December 31, 2018: Debit Credit Accounts Receivable P 120,000 Allowance for Doubtful Accounts 6,000 Sales 750,000 Sales Returns & Allowances 1,500 Sales Discount 600 For the year 2019, the following transactions took place: a) Sales amounted to P1,500,000 of which 60% is on credit, with terms of 2/10,n/30 b) Collections from account customers amounted to P800,000 out of which P388,400 weze collected outside the discount period. c) Sales returns and allowances amounted to P1,800 out of which P900 cash refunds were given to customers. Direction: a) Compute for the balance of the accounts receivable as of December 31, 2019 Use T Account. b) The policy of the company is to maintain the allowance for doubtful accounts based on a certain percentage of accounts receivable outstanding. What is the required allowance for doubtful accounts? c) Give the adjusting entry. Support with an Allowance for Doubtful Accounts T-account. Exercise 19 On September 1, 2019, ABC Company and MNO Company signed a contract with the Daily Bulletin for an ad of their products to be printed every Sunday and to run for 4 months at a rate of P10,000 per month. ABC Company immediately issued a check for this contract while MNO did not because the owner of the Daily Bulletin was a close friend. a) Give the adjusting entry of the ABC Company if the accounting period is yearly ending October 31 and the company is using the asset method. b) Give the adjusting entry of MNO Company if its accounting period is yearly ending December 31 and a statement of account was received from Daily Bulletin