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Assume that on December 31, 2019, the Company has outstanding Accounts Receivable of P425,000. The Company believes that 4% of the outstanding accounts receivable might not be collected. If the allowance for uncollectible accounts before any adjustment has a debit balance of P4,500, how much would be reported as allowance for uncollectible accounts as of year-end? P21,500 P4,500 P17,000 P12,500 Question 39 Liliw Island Business Services has the following information relative to its property, plant and equipment: i. Transportation Equipment - total cost is P431, 500, with estimated useful life of six years and salvage value of P35,500. The transportation equipment was purchased on March 31, 2018. ii. Furniture and Fixtures - On April 1, 2019, the firm purchased desks and cabinets with estimated useful life of three years, depreciable cost of P105,000 and estimated residual value of P15,000. The firm started its operation on January 1, 2019 and will be preparing its annual financial statements for the year ended December 31, 2019. The firm uses the straight-line method of depreciation. QUESTION: How much is the Depreciation Expense - Transportation Equipment that the firm will report in 2019? P66,000 P115,500 P121,000 P49,500 QUESTION: How much is the Depreciation Expense-Furniture and Fixtures that the firm will report as of December 31 . 2019? P22,500 P30,000 P35,000 P26,250

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