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Problem 1: Mayon Volcano Company operates in the travel industry and incurs costs unevenly throughout the year. Advertising costs of P2,000,000 were incurred on March 1, 2019, and staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around P20,000,000 for the year. Of that sum, P3,000,000 would relate to the period ending March 31, 2014. What amount should be included in the quarterly financial reports ending March 31, 2019?
Advertising Bonuses
a. 2,000,000 5,000,000
b. 500,000 5,000,000
c. 2,000,000 3,000,000
d. 500,000 3,000,000
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