profits and surplus which he may assign to a third person, Which of the following statements concerning such right is correct?
22. Torres is indebted for P5,OOO.00 to MACE Trading Company, a partnership managed by Mendoza to whom Torres also owes P 10,000.00. The two debts which are both demandable are unsecured. Torres remits P4,500.00to Mendoza in payment of his debt to him. Accordingly, Mendoza issues a receipt for his own credit. To which credit should the payment be applied?