The following data are obtained from the singleentry 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 Uneamed rent income 40,000 120,000 Balance, January 1 Receipts: Accounts receivable (after sales discount of P100,000) Notes receivable Cash sales Rent income Sales of equipment costing P200,000 and carrying amount of P100,000 Investment P3,000,000 960,000 800,000 80,000 120,000 600,000 P1,200,000 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 Balance, December 31 The following supplementary information is available: 1) Accounts receivable of P120,000 were mitten-off as uncollectible. 2) Returns of P320,000 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. 5,160,000 P1 00,000