PROBLEM 1 The beginning balances of the accounts receivable and allowance for bad debts accounts of Pivot! Corporation are P5,000,000 and P100,000, respectively. On your audit of the financial statements for the period ended and as of December 31, 2020, you have gathered the following information: Credit sales; terms 5/10, 2/15, n/30 P20,000,000 Total collections 16,420,000 Sales returns 220,000 Sales allowances 200,000 Accounts written off 85,000 Recoveries 20,000 Additional information: 50% of the credit sales were collected within the 10-day discount period and 20% were collected within the 15-day discount period Recoveries were immediately collected upon setting back the receivable The entity follows the percentage of ending accounts receivable to determine the balance of allowance for bad debts Required: 1. How much from the total collections were not able to avail of any of the cash discounts? 2. What is the net sales of the entity for 2020? 3. What is the adjusted balance of the Accounts Receivable account as of December 31, 2020? 4. How much is the bad debts expense for 2020? 5. What is the adjusted balance of the Allowance for Bad Debts account as of December 31, 2020? 6. What is the carrying value of accounts receivable as of December 31, 2020