TIMED TASK

former borrowed another P500,000 from the latter. Both debts are now due. Upon demand by Cristine, Desiree paid P40,000 without designating the liability on which it would be applied. How will the P40,000 be applied It will be considered as payment for the July 1 debt only It will be considered as payment for both debts, in the ratio of 1:1 It will be considered as payment for the March1 debt only It will be considered as payment for both debts, in the ratio of 1:5 respectively