How much would have been reported as receipts

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Liquid Company reported revenue of P1,980,000 in its income statement for the year ended December 31, 2020. Additional information were as follows:

December 31, 2019 December 31, 2020

Accounts receivable P415,000 P550,000

Allowance from doubtful accounts 25,000 40,000

Problem 1: No uncollectible accounts were written off during 2020. Had the cash basis of accounting been used instead, how much would have been reported as receipts for 2020 by Liquid Company?

a. 1,845,000

b. 1,860,000

c. 1,885,000

d. 2,115,000

Reference no: EM132673664

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