intermediate accounting v1 valix answer 1 and 2

Nova Company reported the following receivables on December 31, 2020: Accounts receivable, net of P500,000 allowance for doubtful accounts 4,600,000 Interest receivable 190,000 Notes receivable 4,000,000 The notes receivable comprised: P1,000,000 note dated October 31, 2020, with principal and interest payable on October 31, 2021. P3,000,000 note dated March 31, 2020, with principal and 8% interest payable on March 31, 2021. During 2021, sales revenue totaled P21,000,000, P18,000,000 cash was collected from customers, and accounts receivable of P600,000 were written off. All sales were made on a credit basis. Doubtful accounts expense was recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2021? a. 110,000 b. 240,000 C. 60,000 d. 80,000 2. What amount should be reported as doubtful accounts expense for 2021? a. 750,000 b. 850,000 C. 600,000 d. 100,000