On April 21, 2019, a fire damaged the office and warehouse of BANANA CO. The only accounting record saved was the general ledger, from which the trial balance below was prepared. Muntinlupa Company Trial Balance March 31, 2019 DEBIT CREDIT Cash P 180,000 Accounts receivable 400,000 Inventory, Dec. 31, 2018 750,000 Land 350,000 Building 1,100,000 Acc. depreciation P 413,000 Other assets 56,000 Accounts payable 237,000 Accrued expenses 180,000 Share capital, P100 par 1,000,000 Retained earnings 520,000 Sales 1,350,000 Purchases 520,000 Operating expenses 344,000 Totals P3.700.000 P3.700.000 The following data and information have been gathered: a. The company's year-end is December 31. b. An examination of the April bank statement and cancelled checks revealed that checks written during the period April 1 to 21 totaled P130,000: P57,000 paid to accounts payable as of March 31, P34,000 for April merchandise purchases, and P39,000 paid for other expenses. Deposits during the same period amounted to P129,500, which consisted of receipts on account from customers with the exception of a P9,500 refund from a vendor for merchandise returned in April. Correspondence with suppliers revealed unpaid obligations at April 21 of P106,000 for April merchandise purchases, including P23,000 for shipments in transit on that date. d. Customers acknowledged indebtedness of P360,000 at April 21. It was also estimated that customers owed another P80,000 that will never be acknowledged or recovered. Of the acknowledged indebtedness, P6,000 will probably be uncollectible. c. The insurance company agreed that the fire loss claim should be based on the assumption that the overall gross profit ratio for the past two years was in effect during the current year. The company's audited financial statements disdosed the following information: 2019 2018 Net sales P5,300,000 P3,900,000 Net purchases 2,800,000 2,350,000 Beginning inventory 500,000 660,000 Ending inventory 750,000 500,0DO Inventory with a cost of P70,000 was salvaged and sold for P35,000. The balance of the inventory was a total loss