The following information is for Mikaela Enterprises Ltd:

Jan. 31 Feb. 28 Mar. 31 Apr. 30

Inventory at cost P25,000 P25,100 P29,000 P23,000

Inventory at LCNRV 24,500 17,600 22,600 17,300

Purchases for the month 20,000 24,000 26,500

Sales for the month 29,000 35,000 40,000

Requirements:

1. Using the above information, what is the monthly income statement for the month of February, March, and April. Mikaela Enterprises Ltd. uses the indirect or allowance method?

2. Journal entry that is needed to establish the valuation account on January 31. Also, the journal entries to adjust it at the end of each month after that.