ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS Transactions for the 1st year 200x: Jan 1 Owner invested P1,000,000 cash Feb 1 Purchased furniture worth P120,000 with 8 years useful life and no salvage value Feb 12 Purchases on account, P600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000. Mar 2 Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000 Collected 80% of receivable on March 2 Mar 7 Mar 12 Paid purchases made on Feb. 12 Mar 23 Received sales returns, P25,000 from sales on Mar 2 Apr 2 Collected remaining receivable on Mar 2. Dec. 30 Paid Rent, P80,000 and utilities, P16,000 Dec. 31 Accrued salary, P120,000. Transactions for the 2nd year 200v: Jan. 15 Paid accrued salary of 200x Apr 27 Purchased goods on account P580,000. FOB destination, freight prepaid P14,000 May 22 Sold goods for cash to various customers, P450,000 Nov 26 Sold goods on account, P560,000. FOB, destination, freight collect, P36,000 Dec 30 Paid Rent P80,000 and utilities, P12,000 Dec 31 Accrued salary, P140,000. Required: Journalize the above transactions (regular, adjusting and closing entries) using PERPETUAL METHOD (Assume that cost of sales is 60% of the invoice price)