Problem 2 - Below is the transaction of Starla Company. For the first month of operation, the following transactions occurred during the start of its operation in October of the current year: Invested cash P 150,000 and Office Equipment- Pro,ooo into the business Purchased on account merchandise, P60,ooo terms 2/15. n/30 FOB Shipping point. Purchased office supplies P5oo on the account. Sold goods for cash P 90,000; 6 Returned defective merchandise, P1,ooo. 10 Sold goods on account, P50,000 to customers with credit terms: 2/15, EOM FOB Destination. Paid the freight charges on transaction made on Oct.3, P20g Paid half the purchases made on Oct. 3, Discount was allowed 12 Made additional purchases for cash, P35,000. 14 Borrowed from the bank P 200,000 and issued a 5-year promissory note. 15 Paid salaries to employees - P 3,000. 16 Refunded Pgoo to customers. 17 Sold merchandise for P 55,000. FOB Destination terms 2/15, EOM 20 Paid the freight charges on Oct. 10 and 17 - P700. 20 Collected half from customers on account on Oct. 10. The discount was not allowed 26 Sold Merchandise, P 75,000 FOB destination terms 2/10, n/30 27 Owner got P 5,000 from the business. 28 Paid the following: salaries P3,ooo., Rent - P 1,000; Utilities- P1500, Advertising - P600 31 Merchandise inventory at the end amounts to P 8,000. INSTRUCTIONS: 1. PREPARE THE JOURNAL ENTRIES USING THE PERIODIC INVENTORY SYSTEM. 2. USE THE FOLLOWING ACCOUNT TITLES FOR JOURNAL ENTRIES AND FINANCIAL STATEMENTS Use this account titles for your Journal Entries Acct code "Account titles Acct code Account titles 101 Cash 401 Sales 103 Accounts Receivable 402 Sales Returns and Allowances 104 Merchandise Inventory 403 Sales Discount 105 Supplies 501 Purchases