The adjusted trial balance of Austronesian Corporation on December 31, 2013, includes the following cash and receivables balances.

Cash-Allied Bank

P450,000

Currency on hand

160,000

Petty cash fund

10,000

Cash in bond sinking fund

150,000

Notes receivable (including notes discounted with recourse, P155,000)

365,000

Accounts receivable

P856,000

Allowance for doubtful accounts

( 41,500)

814,500

Interest receivable

5,250

Current liabilities reported in the December 31, 2013, statement of financial position included:

Obligation on discounted notes receivableP155,000

Transactions during 2014 included the following:

• Sales on account were P7,670,000.
• Cash collected on accounts totaled P5,765,000, including accounts of P930,000 with cash discounts of 2%.
• Notes received in settlement of accounts totaled P825,000.
• Notes receivable discounted as of December 31, 2013, were paid at maturity with the exception of one P30,000 note on which the company had to pay the bank P30,900, which include interest and protest fees. It is expected that recovery will be made on this note early in 2015.
• Customer notes of P585,000 were discounted with recourse during the year, proceeds from their transfer being P585,000. (All discounting transactions were recorded as loans.)Of this total, P480,000 matured during the year without notice of protest.
• Customer accounts of P87,200 were written off during the year as worthless.
• Recoveries of bad debts written off in prior years were P20,200.
• Notes receivable collected during the year totaled P270,000 and interest collected was P24,500.
• On December 31, accrued interest on notes receivable was P6,300.
• Cash of P350,000 was borrowed from Allied Bank with accounts receivable of P400,000 being pledged on the loan. Collections of P195,000 had been made on these receivables [included in the total given in transaction (b)], and this amount was applied on December 31, 2014, to payment of accrued interest on the loan of P6,000, and the balance to the partial payment of the loan.
• The petty cash fund was reimbursed (meaning that cash was removed from the bank account and placed in the petty cash fund) based following analysis of expenditure vouchers:

Travel expense

P1,120

Entertainment expense

780

Postage expense

930

Office supplies expense

1,730

Cash short and over(an income account)

60

• Cash of P30,000 was added to bond retirement fund.
• Currency on hand at December 31, 2014, was P120,000.
• Total cash payments for all expenses during the year were P6,800,000. Charge to general expenses.
• Uncollectible accounts are estimated to be 5% of the December 31, 2014, Accounts Receivable balance.

The total cash to be reported in the company's December 31, 2014 statement of financial position is

Group of answer choices

P569,800

P555,700

P574,300

P574,180

The net accounts receivable as of Dec. 31, 2014 is

Group of answer choices

P1,713,190

P1,756,360

P1,730,860

P1,738,690

The net trade and other receivables to be reported in the company's December 31, 2014 statement of financial position is

Group of answer choices

P2,060,890

P2,023,690

P2,072,260

P2,078,560

In determining validity of accounts receivable, which of the following would you consider as most reliable?

Group of answer choices

c. Documentary evidence that supports the accounts receivable balance

a. Direct telephone communication between auditor and debtor

b. Credits to accounts receivable from the cash receipts book after the close of business at year end

d. Confirmation replies received directly from customers