. Case 1 Lucia Company opens an agency in Batangas. The following are transactions for the month of May 1, 2020 Home Office sends a check for P55,000 to the agency as working fund shipped to the agency Samples - 200,000 Advertising Materials - 20,000 The Home Office fills up sales orders sent by the agency for P1,500,000 worth of merchandise The cost of merchandise shipped is P800,000. The agency collected P833,000, net of 2% discount The working fund is replenished for the delivery expense, maintenance and store supplies amounting to P5500, P3500, and P6000 respectively. The agency exhausted 50% of the samples while 60% of the advertising materials were still unused. 1. How much is the net income (loss) of the agency for the month ended May 31, 2020? A P570,000 B. P560,000 C. P480,000 D. P170,000 2. How much is the net cash discount of the agency for the month ended May 31, 2020? Case 2 Black Polo Inc. opened an agency in Manila. The following are transactions for July 2020. Samples worth P10,000, advertising materials of P5,000 and checks for P50,000 were sent to the agency. Agency sales amounted to P220,000 (cost P150,000). The collection for the agency amounted to P176,400 net of 2% discount. The agency's working fund was replenished for the following expenses incurred: rent for 2 months P10,000, delivery expenses P2,500, and miscellaneous expenses of P2,000. Home Office charges the following to the agency, after analysis of accounts recorded in the books: salaries and wages P15,000 and commission which is 5% of sales. The agency sample inventory at the end of July is 25% of the quantity shipped. The agency has used 20% of the advertising materials sent by the home office. What is the amount of Agency Net Income for the month of July? A P22.400 B. P21.000 c. P17.400 D. P88.400