Test II: The following are the narrative transactions of M Company owned by Mr. Cruz, a businessman. Make a journal entry without VAT. Jan. 1 : Purchased merchandise on account from E. Montero Marketing, P100,000. Term 2/10, n/30. Returned to E. Montero Marketing P5,000 due to bad order and was not Replaced. Sold merchandise for cash to B Company and gave 3% trade discount, P200,000. Paid freight on shipment P1,000. 2 : 4 : Sold merchandise on account to J Enterprises, P350,000. Term; 2/15,n/30. Paid freight of P2,000. Received from B Company P6,000 worth of merchandise returned due to some defects and no replacement has been made. 7: Purchased merchandise on account from C Company P90,000. Term; 3/15, n/30. - Purchased merchandise on cash P100,000. With 5% trade discount. 10 : Paid the account of E. Montero Jan. I purchase. -Collected the account of B Company from Jan 2 sales. 12 : Received an electric bill P15,000. Paid the rent P50,000. Paid salaries of P75,000. 15 : Purchased merchandise from D Company worth P250,000 on account. Trade discount 5%, 10%, 15%. Term; 1/5, n/30. -Sold merchandise on cash worth P150,000. Trade discount 10%, 5%. - Collected the account of J Enterprises. - Paid the account of C Company. 20 : Sold merchandise on Account to X Company worth P300,000. Term 5/20, n/60. - Sold merchandise for cash P150,000. - Returned defective goods to D Company worth P10,000. -Received defective goods from Jan 15, sold as cash worth P3,000. -Paid the account of D Company, Jan. 15 purchase. 25; Purchase merchandise on cash P150,000, and on account for E Company P300,000. All purchases have 5% trade discount. Terms 4/10, n/30 for account purchases. 30: Collected the account of X Company. -Paid the account of E Company. -Paid salaries P70,000. -Paid the electric bill P15,000