This is the problem.

8. Karen Company balances as at December 31, 2018 before year end adjustment as follows: Debit Credit Accounts Receivable Php 300,000 Allowance for Bad Debts, before adjustment Php 3,000 Merchandise Inventory Php 400,000 Php Net Sales 1,000,000 Cost of Sales Php 800,000 Additional Information and data for adjustments as follows: 1. The company sells at a mark up of 20% based on sales. All customers are within a 4 day delivery area 2. On December 27, 2018, Karen Company authorized a customer to return for full credit, goods shipped and billed at Php 30,000 on December 14, 2018. The returned goods were received by Karen Company on January 4, 2019 and a Php 30,000 credit memo was issued on the same date. The goods were not included in the ending inventory. 3. A Php 40,000 shipment of goods to a customer on December 31, 2018, the terms fob shipping point with a 2/10, n/30 and was not recorded as a sale in 2018. The goods were included in the 2018 ending inventory 4. A Php 50,000 shipment of goods to a customer on December 30, 2018, terms fob destination, 5/10, n/30 was recorded as a sale in 2018. The goods were excluded in the 2018 ending inventory. 5. A Php 20,000 shipment of goods to a customer on December 29, 2018 terms fob shipping point 3/10, n/30 was recorded as a sale in 2018. The goods were not included in the 2018 ending inventory 6. Based on the aging of accounts receivable, the allowance for bad debts would be Php 15,000 Required: Based on the above, compute for the following: 1. Adjusted balance of accounts receivable as of December 31, 2018 2. Merchandise inventory as of December 31, 2018 3. Net sales for the year 2018 4. Cost of sales for the year 2018 5. Net realizable value of Accounts Receivable as of December 31, 2018