Reference no: EM132829177

Sailor Company provided the following transactions:

1. April 5 Received from A, a customer, P550,000, 60-day, 12% note, dated April 4, in payment of an account.
2. 19 The note of A was discounted with the bank at 14%.
3. May 3 Received a P1,000,000, 30-day noninterest bearing note dated May 1 from B, in payment of an account.
4. 16 The note of B was discounted with the bank at 12%.
5. 25 Received from C, a customer, a P1,500,000, 60-day, 12% note dated May 15 and made by Company X. Gave the customer credit for the maturity value of the note less discount at 12%.
6. June 7 Received notice from the bank that the note of A was not paid on maturity.
7. Paid bank the amount due plus protest fee and other charges of P20,000.
8. 15 Received a 60-day, 12% note, P800,000, dated June 15, from D, a customer for sale of merchandise.
9. 18 Received full payment from A including interest of 12% on total amount due from maturity date of original note.

Required:

Question 1: Prepare the journal entries to record the transactions assuming any discounting of notes receivable is accounted for as conditional sale.