When using the direct method, as Bad debt expense is recorded: total liabilities increase and owner's equity decreases. total assets increase and owner's equity decreases. total assets remain the same and owner's equity remains the same. total assets decrease and owner's equity decreases. Kapit Lang Company sold items on account to Kaya Pa Company for P75,000, net of tax, on April 10, 2020. Terms 1/10, n/30. A total of 5% of the product was returned owing to a manufacturing fault. Kaya Pa Company paid 20% of the outstanding account on April 20, and the remaining amount was paid on April 25, 2020. What is the amount of the output tax on the partial payment of the account? O P450 OP8,550 O P1,710 The following figures have been taken from the accounts of a manufacturing organization: Cost of raw materials used P90 000 Direct wages 50 000 Indirect wages 30 000 Direct expenses 40 000 Indirect expenses 20 000 Which of the following figures represents the manufacturers' prime cost? (Prime Cost = Direct Materials + Direct Labor, Conversion Cost = Direct Labor + Factory Overhead) O P180 000 OP90 000 O P140 000 O P230 000 On August 31, 2020, Sawadeka Company discounted with recourse a customer's note at the bank at discount rate of 15%. The note was received from the customer on August 1, 2020, is for 90 days, has a face value of P5,000,000, and carries an interest rate of 12%. The customer paid the note to the bank on October 30, 2015, the date of maturity. How much is the cash proceeds from note receivable discounting? OP5,150,000 OP5,000,000 OP5,050,000 OP5,021,250