Hopeful Company had the following cash balances at December 31, 2020:

Undeposited coin and currency 500,000

Unrestricted demand deposit 1,500,000

Company checks written and deducted

from the demand deposits amount

but not scheduled to be mailed until January 2, 2021. 300,000

Time deposits restricted for use (expected use in 2021) 3,000,000

In exchange for a guaranteed line of credit, Hopeful has agreed to maintain a minimum balance of P150,000 in its unrestricted demand deposit account.

1.How much should Hopeful report as Cash in its December 31, 2020, balance sheet?

2.How much is the adjustment to accounts receivable?