Problem 1 The following data are obtained from the single-entry records kept by the proprietor of Snorlax Store for 2020: December 31 January 1 Cash P1 ,600,000 P1.200.000 Notes receivable 1,200,000 400,000 Accounts receivable 2.000,000 1.600.000 Merchandise inventory 960.000 1.600.000 Equipment 1.120.000 1.200.000 Notes payable 480.000 720.000 Accounts payable 1,040,000 1.200.000 Interest payable 40,000 80,000 Unearned rent income 40,000 120,000 The cash book shows the following information: Balance, January 1 P1,200,000 Receipts: Accounts receivable (after sales discount of P100000) P3,000,000 Notes receivable 960,000 Cash sales 800,000 Rent income 80,000 Sales of equipment costing P200000 and carrying amount of P100,000 120,000 Investment 600,000 5,560,000 6.760.000 Payments: Accounts payable P1 ,520,000 Notes payable 1,280,000 Cash purchases 600,000 Interest expense 160,000 Expenses 800,000 Equipment 400,000 Withdrawals 400,000 5,160,000 Balance, December 31 P1.600.000 The following supplementary information is available: '1) Accounts receivable of P120,000 were writtenoff as uncollectible. 2) Returns of P320000 were made on merchandise sales. 3) Allowances of P80,000 were received on merchandise purchases. Required: a) Compute the net income or loss using the single-entry method. b) Prepare an income statement for 2020