Merchandise worth P5,600 was received to replace items worth the same amount that were returned to the supplier and documented as a purchase return last month. Following delivery of the products to replace the defective items previously returned, the buyer's entry would be: O DR: Purchases, P5,600; CR: Cash, P5,600 O DR: Purchase Returns and Allowances, P5,600; CR: Accounts Payable, P5,600 O DR: Merchandise Inventory, P5,600; CR: Purchase Returns and Allowances, P5,600 DR: Accounts Payable, P5,600; CR: Purchase Returns and Allowances, P5,600 A company wants to increase its Allowance for Doubtful Debts to P33,000. The Allowance for Doubtful Debts accounts currently have a P5,000 negative balance. What is the maximum amount of bad debts that must be recorded at the end of the period? P38,000 OP5,000 OP33,000 P28,000 The following is derived from Grilling Me Softly With His Tongs' 2020 financial statements: Accounts Receivable - January 1 200,000 Accounts Receivable - December 31 500,000 Sales on account and cash sales 700,000 Uncollectible Accounts 50,000 No accounts receivable were written off or recovered during 2020. Grilling Me Softly With His Tongs should report cash collected from customers at what amount if the direct method is used in the 2020 cash flow statement O P400,000 OP900,000 OP850,000 OP350,000 The following information was extracted from a retailer's books who used a perpetual inventory system: Sales (Cost P20,000) P50,000 Purchases 30,000 Transportation in 2,000 Sales Discount 1,500 Sales Returns and Allowances 5,000 Purchase Discount 800 Purchase Returns and Allowances 1,000 The merchandise inventory account's balance is: P32,000 P30,200 O P18,200 OP10,200