The following transactions were completed by Malaya Company in December 31, 20x9 Dec 9 Sold merchandise to First Yaya store under credit terms of 2/10, n/30. The list price is P 120,000, less 10%,...

1. The following transactions were completed by Malaya Company in December 31, 20x9

The company adopts the calendar year- as its reporting period. The accounts of Men’s World and Teen’s Kingdom are considered to be collectible at December 31. Teen’s Kingdom paid its account in full on January 5, 20x10, while Men’s World paid its account in full on January 9, 20x10.

Required. Journalize the transactions assuming that (a) The company uses the gross method of recording sales (b)The company uses the net method of recording sales. Prepare adjusting entries on December 31 as well as entries on the date of payment