The statement of financial position of Irvin Company, a single proprietorship on December 1,2019 is as follows: Irvin Company Statement of Financial Position December 1,2019 Assets Cash Accounts Receivable Less: Allowance for Uncollectible accounts Merchandise Inventory Property, plant and equipment Less: Accumulated Depreciation Total Assets Liabilities and Capital Accounts payable Irvin Co, Capital Total Liabilities and Capital I P 960,000 40,000 P 240,000 20,000 220,000 920,000 P 360,00 320,000 P 1,820,000 P 560,000 1.260,000 P 1,820,000 Irvin Co admits Jester Yu and the latter is to invest cash to give him a capital credit equal to 1/4 of Irvin Co's capital after giving effect to the adjustments of the items below: The merchandise inventory is to be valued at P 280,000 The accounts receivable is estimated to be 95% collectible. The property, plant and equipment is underdepreciated by P 40,000 The partnership will use Irvin Co's old set of books. REQUIRED: a.) Give the necessary entries to adjust the books of Irvin Co and to record the formation of the partnership. b.) Prepare a statement of financial position for Irvin. Co and Jester Yu on December 1, 2019.