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At the close of its first year of operations, December 31, 2019, MUJAR Company had accounts receivables of P4,000,000 after it had written off uncollectible accounts of P100,000 that it had charged to expense under the direct write off method. But before preparing its 2019 financial statements, MUJAR decided to use the allowance method and determined that the required allowance is P300,000. In a related matter, P30,000 of receivables written off were collected after the end of the reporting period.
Problem 1: What is the carrying amount of accounts receivables on December 31, 2019?
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