Pleasee see attached file below

2. The following transactions occurred between Salazar Company (the seller) and Bautista Company (the buyer). April 19, 2007 Salazar Company sold P 800,00 in merchandise to Bautista Company on account, with terms n/30 May 19, 2007 Salazar Company granted Bautista Company a 90 day extension on the account receivable. Bautista Company signed a P 800,000, 10%, 90-day note as evidence of the time extension. Aug. 17, 2007 Bautista Company paid Salazar Company the amount due on the note. Required: a. Prepare the journal entries used by Salazar Company to record the sale and the note receivable. Assume that the cost of merchandise sold to Bautista Company was P 500,000. b. Prepare the journal entries used by Bautista Company to record the purchase and the note payable