ELABORATE

Hayes Company, an importer of cell phones, sold goods to Niko Cyber on August $1,2018,$ at an invoice price of $12,000.$ To attract customers, the company sells on account with terms of $\frac{2}{10},\frac{n}{30}.$ Niko gave a $30\%$ down payment, got an allowance approved for two defective cell phones priced at P$1,500$ on August $4,$ and paid promptly its account on August $10.$

ACTIVITY $1$: From the data presented above:

a$.$ Prepare journal entries in the books of Hayes, a non$-$VAT registered firm under the periodic method.

b$.$ Prepare journal entries, assuming Hayes is a VAT registered firm. VAT rate is $12\%.$