Malangas Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms:

30% down payment on the date of sale and the balance is payable in four

equal annual installments every December 31. The cost of the equipment is

P1,200,000. Ignore the concept of time value of money.

Requirement: 

Provide the journal entries for 2020 and 2021. Show all computations in good form.