Offsetting 5. Entity A has an account receivable of P200,000 from Entity B. In addition, Entity A also has an account payable of P160,000 to Entity B. The account receivable is due in 30 days while...

Extracted text: Offsetting 5. Entity A has an account receivable of P200,000 from Entity B. In addition, Entity A also has an account payable of P160,000 to Entity B. The account receivable is due in 30 days while the account payable is due in 90 days. Entity A intends to settle first the account receivable. If Entity A has a legal right of set- off, how much account receivable will be shown in its statement of financial position? c. 160,000 d. a or b a. 200,000 b. 40,000