The balance sheet for the ACE Corporation on December 31, 2019, includes the following receivable balances:

Notes receivable P 365,000

Less notes discounted 155,000 P 210,000

Accounts receivable P 856,000

Less allowance for doubtful accounts 41,500 814,500

Interest receivable 5,250

Transactions during 2020 included the following:

a. Sales on account were P 7.670.000.

b .Cash collected on accounts totaled P5.765.000, which included accounts of P 930.000 on which cash discounts of 2% were allowed.

c. Notes received in settlement of accounts totaled P 825,000.

d. Notes receivable discounted as of December 31,2019, were paid at maturity with

exception of one P 30,000 note on which the company had to pay the bank P 30,900,

which included interest and protest fees. It is expected that the recovery will be made

on this note early 2021 .

e. Customers' notes of P 600,000 were discounted with recourse during the year,

proceeds from their transfer being P 585,000. Of this total, P 480,000 matured

during the year without notice of protest.

f Customers' accounts of P 87,200 were: written off during the year as worthless.

g. Recoveries of doubtful accounts written off in prior years were P 20,200.

h. Notes receivable collected during the year totaled P 270,000 and interest collected

was P 24.500.

i. On December 3 1 , ;accrued interest on notes receivable was P 6,300.

j. Uncollectible accounts are estimated to be 5% of the December 31, 2020 Accounts

Receivable balance.

k .Cash of P 350.000 sss borrowed from the bank, accounts receivable of P 400,000

being pledged on the loan. Collections of P 195,000 had been made on these

receivables (a) included in the total given in transaction (b) and this amount was

applied on December 31 2020 to payment of accrued interest on the loan of P

6,000 and the balance to partial payment of the loan.

Considering the above data determine the following adjusted balances as of December 31, 2020: Compute for the following with good solution

1. Notes Receivable
2. Notes Receivable Discounted
3. Interest Receivable
4. Accounts Receivable
5. Allowance for Doubtful Accounts
6. Bank Loan/Notes Payable-Bank
7. Doubtful Accounts Expense