Problem 3.

Problem 3 Nova Company reported the following receivables on December 31,2018: Accounts receivable, net of P520,000 allowance for doubtful accounts 3,840,000 Interest receivable 190,000 Notes receivable 4,000,000 I The notes receivable comprised: P1,000,00-0 note dated October 31,2018, with principal and interest payable on October 31,2019. P3 ,000,000 note dated March 31,2018, with principal and 8% interest payable on March 31,2019. I During 2019, sales revenue totaled P21,200,000, Pl9,800,000 cash was collected from customers, and P410,000 in accounts receivable were written off. All sales are made on a credit basis. I Doubtful accounts expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. 1. What amount should be reported as interest income for 2019? 2. What amount should be reported as doubtful accounts expense for 2019