Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000. Additional information regarding rental income are presented below:
Unearned rental income, January 1, 2020 P50,000
Unearned rental income, December 31, 2020 75,000
Accrued rental income, January 1, 2020 30,000
Accrued rental income, December 31, 2020 40,000
Under the cash basis, how much rental income should be reported by EL Company in year 2020?
Group of answer choices
d. P655,000
c. P625,000
b. P615,000
a. P585,000