The following information is based on a first audit of EMMA COMPANY. The client has not prepared financial statements for 2017, 2018, or 2019. During these years, no accounts have been written off as uncollectible, and the rate of gross income on sales has remained constant for each of the three years. Prior to January 1, 2017, the client used the accrual method of accounting. From January 1, 2017 to December 31, 2019, only cash receipts and disbursements records were maintained. When sales on account were made, they were entered in the subsidiary accounts receivable ledger. No general ledger postings have been made in December 31, 2016 As a result of your examination, the correct data shown in the table below are available: Accounts receivable balances: 12/31/16 12/31/19 Less than one year old P15,400 P28,200 One to two years old 1,200 1,800 Two to three years old 800 Over three years old 2,200 Total accounts receivable P16,600 P33,000 Inventories P11,600 P18,800 Accounts payable for inventory purchased P5,000 P11,000 Cash received on accounts receivable in: 2017 2018 2019 Applied to: Current year collections P148,800 P161,800 P208,800 Accounts of the prior year 13,400 15,000 16,800 Accounts of two years prior 600 400 2,000 Total P162,800 P177,200 P227,600 Cash sales P17,000 P26.000 P31,200 Cash disbursements for Inventory purchased P125.000 P141200 P173.800