On January 1, 2017,Americano Companyhad accounts receivable and allowance for doubtful accounts balances of P950,000 and P100,000 respectively. During 2017, cash and credit sales totaled P5,900,000. Collections from customers were as follows: from credit customers who took advantage of the 4/10, n/30, P3,024,000, from credit customers who did not took advantage of the credit terms (which includes recovery of accounts previously written off of P25,000), P450,000, from cash customers, P2,100,000. Also, P50,000 of accounts were written off during the year and sales returns and allowances were as follows: credit memorandum issued to credit customers, P250,000 and cash refund to cash customers, P20,000. Americano estimates that 5% of its accounts receivable ending balance is considered doubtful.

1. What is the net realizable value of accounts receivable on December 31, 2017?
2. What is the amount of net sales?