In 2022, Joey Company reported a net realizable value of P680,000 for its Accounts Receivable. The ending balance of Allowance for Doubtful Accounts amounted to P120,000. During the year 2023, total sales amounted to P3,600,000, a third of which was on credit. A P80,000 receivable was also written off in 2023, while P40,000 was recovered during the same year. Collections during the year (excluding recovery) amounted to P500,000.

Required

1. How much is the ending accounts receivable? (2pts)

2. If the percentage of A/R Method is used, how much is the 2023 ending balance of the Allowance for Doubtful Accounts? (Assume a 10% rate) (2pts)

3. How much is the net realizable value for accounts receivable at the end of 2023? (4pts)