Pls. Answer the fill-in the blanks items. Round-off your final answers to the nearest peso.

1.

AB Company, a resident foreign corporation using cash basis of accounting to report on a scal year ending every August 31, had the following account balances in its August 31, 2020 trial balance: Credit Sales P8,000,000 ' 0 Accounts Receivable (60 in from 5.0001000 resident clients) Allowance for bad debts 300,000 For the year ending August 31, 2020, AB Company estimates a provision of 5% of receivables. AB Company was able to collect 80,000 from accounts that were previously written off: Compute for the deductible bad debt expense. P The following relates to a taxpayer: Interest expense on bank loan offset by P12,000 net interest income from the temporary deposit of the borrowed amount the same bank amounting to P295,00. Interest income form bonds amounted to P80,000 Compute for the deductible interest expense P