On January 1, 2014, Jocose Company reported the following: Accounts receivable 2,000,000 Allowance for doubtful accounts 100,000 Additional information for the current year: 1. Cash sales of the entity amount to P800,000 and represent 10% of gross sales. 2. Ninety percent of the credit sales customers do not take advantage of the 5/10, n/30 terms. 3. Customers who did not take advantage of the discount paid P5, 940,000. 4. It is expected that cash discounts of P10,000 will be taken on accounts receivable outstanding at December 31, 2014. 5. Sales returns amounted to P80,000. All returns were from charge sales. 6. During the year accounts totaling P60,000 were written off as uncollectible. Recoveries during the year amounted to P10,000. This amount is not included in the collections. 7. The allowance for doubtful accounts is adjusted so that it represents a certain percentage of the outstanding accounts receivable at year-end. a. Prepare journal entries to record the transactions. b. What is the net realizable value of accounts receivable on December 31, 2014