EB Co. had the following credit sales in the last week of December 20x1:

Sold goods worth P 550,000 under FOB shipping point on December 27, 20x1. The goods were shipped on December 30, 20x1 and received by the customer on January 2, 20x2

. Sold goods worth P 680,000 under FOB destination on December 28, 20x1. The goods were shipped on December 29, 20x1 and received by the customer on January 3, 20x2.

Requirement: Compute for the amount of receivable to be included in EBs December 31, 20x1 financial statements.

EB Co. sold goods with a list price of P 100,000 on a credit term of 10%, 3/10, n/45.

Requirement (a): Traditional GAAP

Provide the journal entries under the (1) Gross method and (2) net method, respectively. Use the following assumptions: the consideration is collected

• (a.) Within the discount period.
• (b.) Beyond the discount period.

Requirement (b): PFRS 15

Additional information:

In accordance with PFRS 15, EB Co. estimates that 80% of the available cash discount will be taken by the customer. Provide the journal entries. Assume (1) EB Co. uses a sales discount account, and (2) EB Co. uses sales discount account. Assumer further that the estimate coincides with actual result.