receives a royalty of 15 percent of sales. Batangas Solutions pays royalties to Diaz Elisa Diaz Technologies produces computer software that Batangas Solutions sells. Diaz Technologies on a semi-annual basis-on May 1 for sales made in July through December of the previous year and on November 1 for sales made in January through Royalty expense for Batangas Solutions and royalty income for Diaz Technologies in the amount of P600,000 were accrued on Dec. 31, 2019. Cash in the amounts of P600,000 and P1,000,000 was paid and received on May 1 and Nov. 1, 2020, respectively. Software sales during the July to December 2020 period totaled P15,000,000. June of the current year. Adjusting the Accounts | 213 NAME: SECTION: SCORE: PROFESSOR: Problem #3 Accrual of Royalties Required: 1. Calculate the amount of royalty expense for Batangas Solutions and royalty income for Diaz during 2020. 2. Record the adjusting entry that each entity made on Dec. 31, 2020