Situation 1 Zee Company recorded the following data at the end of the current year: Accounts receivable 8,000,000 Credit sales 20,000,000 Doubtful accounts expense (2% of credit sales) 400,000 The allowance for doubtful accounts on January 1 has a balance of P150,000. The entity elected to estimate its doubtful accounts by using percent of accounts receivable method. The entity estimated that 10% would be a good estimate. Situation 2 On January 1, 2020, X Company purchased machinery for P4,000,000 with a 10-year useful life and no residual value. On March 20, 2020, the entity incurred minor repairs and maintenance cost to this equipment for P300,000. The entity also used the percentage of sales method in estimating doubtful accounts. Doubtful accounts are estimated to be 5% of sales in each quarter. In 2020, the entity followed this procedure for the first three quarters. However, in the fourth quarter, the entity determined that doubtful account expense for the year should be P600,000. Following the calendar year, sales per quarter are first quarter - P1,500.000, second quarter - P1,000,000, third quarter - $2,000,000, and fourth quarter - P1,600,000. Situation 3 Y Company sold accounts receivable with recourse with a face amount of P6,000,000. The factor charged a service fee of 10% of the accounts factored and withheld 4% of the accounts factored as protection against costumer returns and other adjustments. The fair value of the recourse obligation is determined to be P250,000. The accounts were fully collected by the factor during the year