At the beginning of the current year, Nikka Company reported the following information: Accounts receivable Allowance for doubtful accounts P1,800,000 72,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n/60 Cash received from customers P8,935,000 8,000,000 The cash received from customers including the following: Customers paying within the 10 day discount period 4,410,000 Customers paying within the 15 day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period ? Accounts receivable written off as worthless 55,000 30,000 Credit memorandum for sales return The entity follows the percentage of accounts receivable consistently for the allowance for doubtful account. Required: a) Prepare all necessary entries related to the above transactions affecting the accounts receivable. (Observe the correct way of journalizing, use appropriate account title.) b) Prepare the adjustment for doubtful accounts expense at the year end if the entity uses the percentage of accounts receivable method consistently. (Show complete solutions in good form.)