You were engaged to perform an audit of the accounts of Karen Company for the year ended December 31, 2018 and have observed the taking of the inventory of the company on December 30, 2018. Only merchandise shipped by Karen Company to customer up to and including December 30, 2018 has been eliminated from inventory. The inventory as determine by physical inventory count has been recorded on the books by the company controller. No perpetual inventory records are maintained and all sales are made on FOB Shipping Point basis. You are to assume that all other data not presented herein are true. The following list of sales invoices are entered in the sales books for the month of December 2018 and January 2019, respectively.

December 2018:

	Sales Invoice Amount	Sales Invoice Date	Cost of Merchandise Sold	Date Shipped
A	Php 30,000	December 20	Php 20,000	December 31, 2018
B	Php 20,000	December 31	Php 8,000	November 8, 2018
C	Php 10,000	December 29	Php 6,000	December 30, 2018
D	Php 40,000	December 31	Php 24,000	January 4, 2019
E	Php 100,000	December 30	Php 56,000	December 29, 2018 (shipped to consignee)

January 2019:

	Sales Invoice Amount	Sales Invoice Date	Cost of Merchandise Sold	Date Shipped
F	Php 60,000	December 20	Php 40,000	December 30, 2018
G	Php 40,000	January 5	Php 23,000	January 3, 2019
H	Php 80,000	January 4	Php 55,000	December 31, 2018

Required: Prepare the necessary adjusting entries on December 31, 2018 in relation with the above data.