Advance accounting

June XXI - Sales with discounts tor On January 3, 20x5, Holland Company sold to Austin merchandise having a sales price of P16,000 (cost P11,200) with terms of 2/10, n/60, FOB shipping point.) Holland estimates that merchandise with a sales value of P1600 will be returned. An invoice totaling P240, terms n/30, was received by Austin on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Austin notified Holland that P600 of merchandise contained flaws. The same day, Holland issued a credit memo covering the defective merchandise and asked that it be returned at Holland's expense. Holland estimates returned items to have a fair value of P240. The freight on the returned merchandise was P48, paid by Holland on June 7. On June 12, the company received a check for the balance due for Austin. Required: 1. Prepare the journal entries for Holland Company to record all the events noted above assuming sales and receivables are entered at gross selling price. 2. Prepare the journal entry assuming that Austin did not remit payment until August 5