KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - P420,000; Accounts receivable -P380,000; Inventories -P250,000;Notes payable - P100,000. PERRY agreed to contribute cash equal to 30% of KATY'S capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much is the total assets of the partnership after the formation? * 1,390,120 O P 1,342,400 1,357,600 1,389,080