Michael's allowance for bad debts is understated by P 3,500 ; the Merchandise inventory is overstated by P25,000; the accumulated depreciation for the equipment is understated by P20,000. Scottie's allowance for bad debts is overstated by P7,000; Merchandise inventory should be valued at P435,000; and the accounts payable is understated by P18,000. The mortgage payable will be assumed by the partnership. Steve's utilities payable is understated by P25,000. He will also invest additional cash of P500,000. HOW MUCH IS THE TOTAL CAPITAL OF THE NEW PARTNERSHIP? P5,631,050P5,645,050P5,145,050P6,065,050