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Problem 1: Ral Company's checkbook balance on December 31, 2020 was P5,000,000. In addition, Ral held the following items in its safe on that date: (1) Check payable to Ral, dated January 2, 2021 in payment of a sale made in December 2020, not included in December 31 checkbook balance - P2,000,000; (2) Check payable to Ral, deposited December 15 and included in December 31 checkbook balance, but returned by bank on December 30 stamped "NSF". The check was redeposited on January 2, 2021 and cleared on January 9, 2021 - P500,000; and (3) Check drawn on Ral's account, payable to a vendor, dated and recorded in Ral's books on December 31, 2020 but not mailed until January 10, 2021 - P300,000. What is the amount to be reported as cash on December 31, 2020?
a. P4,800,000
b. P5,300,000
c. P6,500,000
d. P6,800,000
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