The beginning balances of the accounts receivable and allowance for bad debts accounts of Goodness Co. are P3,000,000 and P30,000, respectively. On your audit of the financial statements for the period ended and as of December 31, 2016, you have gathered the following information:

 

Credit sales; terms 2/10, 1/15, n/30	10,000,000
Total Collections	7,430,000
Accounts written-off	20,000
Recoveries	5,000
Sales returns	15,000

Additional information:

• 50% of the credit sales were collected within the 10-day discount period and 20% were collected within the 15-day discount period
• Recoveries were immediately collected upon setting back the receivable
• The entity follows the percentage of accounts receivable to determine the balance of allowance for bad debts

Requirements:

1. What is the adjusted balance of the Accounts Receivable account as of December 31, 2016?

2. How much is the bad debts expense for 2016?

3. What is the adjusted balance of the Allowance for Bad Debts account as of December 31, 2016?

4. What is the carrying value of accounts receivable as of December 31, 2016?