The following is MACEDONIA Companys unadjusted income statement for the year ended December 31, 2017:

Sales P2,964,000

Cost of goods sold 1,926,000

Gross income 1,038,000

OPEX:

Rent Expense P250,000

Salaries Expense 345,000

Utilities Expense 219,000

Advertising Expense 30,000

Warranty Expense 14,000

Other expenses 35,500 893,500

Net Income 144,500

You obtained the following information from the companys accounting records:

1. Some of Macedonias customers pay for their orders in advance. At December 31, 2017, orders paid for in advance of shipment totaled P15, 000. These have been included in the sales figure.

2. Macedonias products are sold with a 30-day money-back guarantee. Customers seldom returned the products during the year. Macedonia has not included in the sales figure and in cost of goods sold those products sold within the last 30 days of the current year. The revenue is P98, 000 and the cost of the products is P63, 700.

3. On July 1, 2017, Macedonia prepaid its office space rent for 18 months. The amount paid, P216, 000, was recorded as rent expense.

4. The amount of P120, 000 was paid on July 1, 2017, for general advertising to be completed prior to December 31, 2017. Macedonias management believes that the advertising will benefit a 2-year period and, therefore, has decided to charge the costs to the income statement at the rate of P5, 000 per month.

5. In prior years, Macedonia has estimated warranty expense using a percentage of sales. Future warranty costs relating to 2017 sales are estimated to amount to 2% of sales. However, during 2017, Macedonia elected to charge costs to warranty expense as costs were incurred. Macedonia spent P14, 000 during 2017 to repair and replace defective products sold in current and prior years.

How much is the correct amount of Macedonias sales revenue for 2017? - P3047,000

What is the solution?