Problem A. Jaime decided to admit Ted as co-owner in his business by forming a partnership. The selected accounts of Jaime on May 31, 2018 prior to the admission of Ted are as follows: Debit Credit Cash P ? Accounts receivable 96,000 Merchandise inventory 183,300 Accounts payable P49,600 Jaime, capital It is agreed that the following adjustments should be made: An allowance for doubtful accounts of 2% of accounts receivable is to be established. Merchandise inventory is to be valued at P160,000. Prepaid expenses of P5,200 and accrued expenses of P3,200 are to be recognized. Ted invested cash of P113,640 to give him one-third interest in the partnership capital. What is the adjusted capital balance of Jaime before the admission of Ted? A. P250,500 B. P211,200 C. P230,120 D. P227,280 How much is the cash balance of the sole proprietorship? A. P2,420 B. P38,080 C. P20,800 D. P19,200