Problem
An entity maintains the accounting records on the cash basis but restates the ?nancial statements to the accrual basis. The entity had P6,000,000 in cash basis net income for the current year. The entity reported accounts receivable of P2,000,000 on January 1 and P4,000,000 pm December 31, accounts payable of P3,000,000 on January 1 and P1,500,000 on December 31. Under accrual basis, what amount should be reported as net income for current year?